Economy - overview The economy, one of the world's smallest and least developed, is based on agriculture and forestry, providing the main livelihood for more than 90% of the population. Agriculture consists largely of subsistence farming and animal husbandry. Rugged mountains dominate the terrain and make the building of roads and other infrastructure difficult and expensive. The economy is closely aligned with India's through strong trade and monetary links. The industrial sector is technologically backward, with most production of the cottage industry type. Most development projects, such as road construction, rely on Indian migrant labor. Bhutan's hydropower potential and its attraction for tourists are key resources. The Bhutanese Government has made some progress in expanding the nation's productive base and improving social welfare. Model education, social, and environment programs in Bhutan are underway with support from multilateral development organizations. Each economic program takes into account the government's desire to protect the country's environment and cultural traditions. Detailed controls and uncertain policies in areas like industrial licensing, trade, labor, and finance continue to hamper foreign investment. Major hydroelectric projects will lead expansion of GDP in 2002 by an estimated 6%.

GDP purchasing power parity - $2.5 billion (2001 est.)

GDP - real growth rate 6% (2000 est.)

GDP - per capita purchasing power parity - $1,200 (2001 est.)

GDP - composition by sector
agriculture: 45%
industry: 20%
services: 35% (2001 est.)

Population below poverty line NA%

Household income or consumption by percentage share
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices) 7% (2000 est.)

Labor force NA
note: massive lack of skilled labor

Labor force - by occupation agriculture 93%, services 5%, industry and commerce 2%

Unemployment rate NA%

Budget
revenues: $146 million
expenditures: $152 million, including capital expenditures of $NA (FY95/96 est.)
note: the government of India finances nearly three-fifths of Bhutan's budget expenditures

Industries cement, wood products, processed fruits, alcoholic beverages, calcium carbide

Industrial production growth rate 9.3% (1996 est.)

Electricity - production 1.876 billion kWh (2000)

Electricity - production by source
fossil fuel: 0.05%
hydro: 99.95%
other: 0% (2000)
nuclear: 0%

Electricity - consumption 380.68 million kWh (2000)

Electricity - exports 1.385 billion kWh (2000)

Electricity - imports 21 million kWh (2000)

Agriculture - products rice, corn, root crops, citrus, foodgrains; dairy products, eggs

Exports $154 million (f.o.b., 2000 est.)

Exports - commodities electricity (to India), cardamom, gypsum, timber, handicrafts, cement, fruit, precious stones, spices

Exports - partners India 94%, Bangladesh

Imports $196 million (c.i.f., 2000 est.)

Imports - commodities fuel and lubricants, grain, machinery and parts, vehicles, fabrics, rice

Imports - partners India 77%, Japan, UK, Germany, US

Debt - external $245 million (1998)

Economic aid - recipient substantial aid from India and other nations

Currency ngultrum (BTN); Indian rupee (INR)

Currency code BTN; INR

Exchange rates ngultrum per US dollar - 48.336 (January 2002), 47.186 (2001), 44.942 (2000), 43.055 (1999), 41.259 (1998), 36.313 (1997); note - the Bhutanese ngultrum is at par with the Indian rupee which is also legal tender

Fiscal year 1 July - 30 June

NOTE: The information regarding Bhutan on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Bhutan Economy 2002 information contained here. All suggestions for corrections of any errors about Bhutan Economy 2002 should be addressed to the CIA.