Bhutan's small economy is based largely on hydropower, agriculture, and forestry, which provide the main livelihood for more than half the population. Because rugged mountains dominate the terrain and make the building of roads and other infrastructure difficult and expensive, industrial production is primarily of the cottage industry type. The economy is closely aligned with India's through strong trade and monetary links and is dependent on India for financial assistance and migrant laborers for development projects, especially for road construction. Bhutan signed a pact in December 2014 to expand duty-free trade with Bangladesh.
Multilateral development organizations administer most educational, social, and environment programs, and take into account the government's desire to protect the country's environment and cultural traditions. For example, the government is cautious in its expansion of the tourist sector, restricing visits to environmentally conscientious tourists. Complicated controls and uncertain policies in areas such as industrial licensing, trade, labor, and finance continue to hamper foreign investment.
Bhutan’s largest export - hydropower to India - could spur sustainable growth in the coming years if Bhutan resolves chronic delays in construction. Bhutan’s hydropower exports comprise 40% of total exports and 25% of the government’s total revenue. Bhutan currently taps only 6.5% of its 24,000-megawatt hydropower potential and is behind schedule in building 12 new hydropower dams with a combined capacity of 10,000 megawatts by 2020 in accordance with a deal signed in 2008 with India. The high volume of imported materials to build hydropower plants has expanded Bhutan's trade and current account deficits. Bhutan also signed a memorandum of understanding with Bangladesh and India in July 2017 to jointly construct a new hydropower plant for exporting electricity to Bangladesh.
7.4% (2017 est.)
7.3% (2016 est.)
6.2% (2015 est.)
5.8% (2017 est.)
7.6% (2016 est.)
$9.029 billion (2019 est.)
$8.561 billion (2018 est.)
$8.307 billion (2017 est.)
note: data are in 2017 dollars
$2.405 billion (2017 est.)
$11,832 (2019 est.)
$11,348 (2018 est.)
$11,142 (2017 est.)
note: data are in 2017 dollars
19.2% of GDP (2019 est.)
21.7% of GDP (2018 est.)
27.9% of GDP (2017 est.)
agriculture: 16.2% (2017 est.)
industry: 41.8% (2017 est.)
services: 42% (2017 est.)
household consumption: 58% (2017 est.)
government consumption: 16.8% (2017 est.)
investment in fixed capital: 47.2% (2017 est.)
investment in inventories: 0% (2017 est.)
exports of goods and services: 26% (2017 est.)
imports of goods and services: -48% (2017 est.)
Overall score: 66 (2020)
Starting a Business score: 86.4 (2020)
Trading score: 94.2 (2020)
Enforcement score: 70 (2020)
milk, rice, maize, potatoes, roots/tubers, oranges, areca nuts, chillies/peppers, spices, ginger
cement, wood products, processed fruits, alcoholic beverages, calcium carbide, tourism
6.3% (2017 est.)
397,900 (2017 est.)
note: major shortage of skilled labor
agriculture: 58%
industry: 20%
services: 22% (2015 est.)
3.2% (2017 est.)
3.2% (2016 est.)
8.2% (2017 est.)
37.4 (2017 est.)
38.1 (2007)
lowest 10%: 2.8%
highest 10%: 30.6% (2012)
revenues: 655.3 million (2017 est.)
expenditures: 737.4 million (2017 est.)
note: the Government of India finances nearly one-quarter of Bhutan's budget expenditures
27.2% (of GDP) (2017 est.)
-3.4% (of GDP) (2017 est.)
106.3% of GDP (2017 est.)
114.2% of GDP (2016 est.)
1 July - 30 June
-$547 million (2017 est.)
-$621 million (2016 est.)
$554.6 million (2017 est.)
$495.3 million (2016 est.)
India 94% (2019)
iron alloys, dolomite, refined iron, cement, silicon carbides (2019)
$1.025 billion (2017 est.)
$1.03 billion (2016 est.)
India 85%, Thailand 5% (2019)
refined petroleum, iron products, delivery trucks, cars, wood charcoal (2019)
$1.206 billion (31 December 2017 est.)
$1.127 billion (31 December 2016 est.)
$2.671 billion (31 December 2017 est.)
$2.355 billion (31 December 2016 est.)
ngultrum (BTN) per US dollar -
64.97 (2017 est.)
67.2 (2016 est.)
67.2 (2015 est.)
64.15 (2014 est.)
61.03 (2013 est.)
NOTE: The information regarding Bhutan on this page is re-published from the 2021 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Bhutan 2021 information contained here. All suggestions for corrections of any errors about Bhutan 2021 should be addressed to the CIA or the source cited on each page.
This page was last modified 16 Dec 23, Copyright © 2023 ITA all rights reserved.