Economy of Bhutan

Infobox Economy
country = Bhutan


width =
caption =
currency = ngultrum (BTN); Indian rupee (INR)
year = 1 July - 30 June
organs = SAFTA
rank = 169th
gdp = $3.5 billion (2006 est.)
growth = 8.8% (2005 est.)
per capita = $1,400 (2003 est.)
sectors = agriculture: 24.7%, industry: 37.2%, services: 38.1% (2005)
inflation = 5.5% (2005 est.)
poverty = 31.7% (2003)
gini = no data
labor = no data (shortage of skilled labor)
occupations = agriculture: 63%, industry: 6%, services: 31% (2004 est.)
unemployment = 2.5% (2004)
industries = cement, wood products, processed fruits, alcoholic beverages, calcium carbide, tourism
exports = $350 million f.o.b. (2006)
export-goods = electricity (to India), cardamom, gypsum, timber, handicrafts, cement, fruit, precious stones, spices
export-partners = India 54.5%, Hong Kong 34.6%, Bangladesh 6.9% (2006)
imports = $320 million c.i.f. (2006)
import-goods = fuel and lubricants, grain, aircraft, machinery and parts, vehicles, fabrics, rice
import-partners = India 76.0%, Japan 5.5%, Germany 3.2% (2006)
debt = 81.4% of GDP (2004)
revenue = $272 million (2005)
expenses = $350 million (India finances 3/5 of Bhutan's expenditures) (2005)
aid = $90.02 million (India) (2005)
cianame = bt
spelling = US

The economy of Bhutan, one of the world's smallest and least developed, is based on agriculture and forestry, which provide the main livelihood for more than 60% 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.

Macro-economic trend

This is a chart of trend of gross domestic product of Bhutan at market prices [http://www.imf.org/external/pubs/ft/weo/2007/01/data/weorept.aspx?sy=1980&ey=2008&scsm=1&ssd=1&sort=country&ds=.&br=1&pr1.x=37&pr1.y=8&c=514&s=NGDP_R%2CNGDP_RPCH%2CNGDP%2CNGDPD%2CNGDP_D%2CNGDPRPC%2CNGDPPC%2CNGDPDPC%2CPPPWGT%2CPPPPC%2CPPPSH%2CPPPEX%2CPCPI%2CPCPIPCH%2CLP%2CBCA%2CBCA_NGDPD&grp=0&a=|reported] by the International Monetary Fund:

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. For example, the government, in its cautious expansion of the tourist sector, encourages visits by upscale, environmentally conscientious tourists. Detailed controls and uncertain policies in such areas as industrial licensing, trade, labor, and finance continue to hamper foreign investment.

In 2004, Bhutan became the first country in the world to ban smoking and the selling of tobacco.

Other statistics

Industrial production growth rate:9.3% (1996 est.)

Electricity:
* "production:" 2 TWh (2005)
* "consumption:" 380 GWh (2005)
* "exports:" 1.5 TWh (2005) (exports electricity to India)
* "imports:" 20 GWh (2005)

Electricity - production by source:
* "fossil fuel:" 0.39%
* "hydro:" 99.61%
* "nuclear:" 0%
* "other:" 0% (1998)

Oil:
* "production:" 0 barrel/day (2005)
* "consumption:" 1,200 barrel/day (2005 est.)
* "exports:" 0 barrel/day (2004)
* "imports:" 1,138 barrel/day (2004)

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

Currency:1 ngultrum (BTN) = 100 chetrum; Indian rupee (INR) is also legal tender

Historic exchange rates::

References

*factbook
*StateDept

External links

* [http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/0,,contentMDK:21160796~pagePK:146736~piPK:146830~theSitePK:223547,00.html Global Economic Prospects: Growth Prospects for South Asia] The World Bank, Dec. 13, 2006