Overview: The economy, one of the world's least developed, is based on agriculture and forestry, which provide the main livelihood for 90% of the population and account for about 50% of GDP. Rugged mountains dominate the terrain and make the building of roads and other infrastructure difficult and expensive. The economy is closely aligned with that of India through strong trade and monetary links. The industrial sector is small and 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 its most important natural resources; however, the government limits the number of tourists to 4,000 per year to minimize foreign influence. Much of the impetus for growth has come from large public-sector companies. Nevertheless, in recent years, Bhutan has shifted toward decentralized development planning and greater private initiative. The government privatized several large public-sector firms, is revamping its trade regime and liberalizing administerial procedures over industrial licensing. The government's industrial contribution to GDP decreased from 13% in 1988 to about 10% in 1992.

National product: GDP - purchasing power equivalent - $500 million (1993 est.)

National product real growth rate: 5% (FY93 est.)

National product per capita: $700 (1993 est.)

Inflation rate (consumer prices): 11% (October 1993)

Unemployment rate: NA%

Budget:
revenues: $100 million
expenditures: $112 million, including capital expenditures of $60 million (FY92 est.)
note: the government of India finances nearly one-quarter of Bhutan's budget expenditures

Exports: $66 million (f.o.b., FY93 est.)
commodities: cardamon, gypsum, timber, handicrafts, cement, fruit, electricity (to India), precious stones, spices
partners: India 82%, Bangladesh, Singapore

Imports: $125 million (c.i.f., FY93 est.)
commodities: fuel and lubricants, grain, machinery and parts, vehicles, fabrics
partners: India 60%, Japan, Germany, US, UK

External debt: $141 million (June 1993)

Industrial production: growth rate NA%; accounts for 8% of GDP; primarily cottage industry and home based handicrafts

Electricity:
capacity: 336,000 kW
production: 1.5422 billion kWh
consumption per capita: 2,203 kWh (25.8% is exported to India leaving 1,633 kWh per capita; 1990-91)

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

Agriculture: accounts for 45% of GDP; based on subsistence farming and animal husbandry; self-sufficient in food except for foodgrains; other production - rice, corn, root crops, citrus fruit, dairy products, eggs

Economic aid:
recipient: Western (non-US) countries, ODA and OOF bilateral commitments (1970-89), $115 million; OPEC bilateral aid (1979-89), $11 million

Currency: 1 ngultrum (Nu) = 100 chetrum; note - Indian currency is also legal tender
Exchange rates: ngultrum (Nu) per US$1 - 31.370 (January 1994), 30.493 (1993), 25.918 (1992), 22.742 (1991), 17.504 (1990), 16.226 (1989); note - the Bhutanese ngultrum is at par with the Indian rupee

Fiscal year: 1 July - 30 June

NOTE: The information regarding Bhutan on this page is re-published from the 1995 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Bhutan Economy 1995 information contained here. All suggestions for corrections of any errors about Bhutan Economy 1995 should be addressed to the CIA.