Economy of Bhutan
Encyclopedia
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 and dependence on India's financial assistance. 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. Model education, social, and environment programs 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 areas such as industrial licensing, trade, labor, and finance continue to hamper foreign investment. Hydropower
exports to India have boosted Bhutan's overall growth, even though GDP fell in 2008 as a result of a slowdown in India, its predominant export market.
:
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.
9.3% (1996 est.)
Electricity:
Electricity - production by source:
Oil:
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:
Bhutan
Bhutan , officially the Kingdom of Bhutan, is a landlocked state in South Asia, located at the eastern end of the Himalayas and bordered to the south, east and west by the Republic of India and to the north by the People's Republic of China...
, one of the world's smallest and least developed, is based on agriculture
Agriculture
Agriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...
and forestry
Forestry
Forestry is the interdisciplinary profession embracing the science, art, and craft of creating, managing, using, and conserving forests and associated resources in a sustainable manner to meet desired goals, needs, and values for human benefit. Forestry is practiced in plantations and natural stands...
, which provide the main livelihood for more than 60% of the population. Agriculture consists largely of subsistence farming and animal husbandry
Animal husbandry
Animal husbandry is the agricultural practice of breeding and raising livestock.- History :Animal husbandry has been practiced for thousands of years, since the first domestication of animals....
. Rugged mountains dominate the terrain and make the building of roads and other infrastructure difficult and expensive. The economy is closely aligned with India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
's through strong trade and monetary links and dependence on India's financial assistance. 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. Model education, social, and environment programs 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 areas such as industrial licensing, trade, labor, and finance continue to hamper foreign investment. Hydropower
Hydropower
Hydropower, hydraulic power, hydrokinetic power or water power is power that is derived from the force or energy of falling water, which may be harnessed for useful purposes. Since ancient times, hydropower has been used for irrigation and the operation of various mechanical devices, such as...
exports to India have boosted Bhutan's overall growth, even though GDP fell in 2008 as a result of a slowdown in India, its predominant export market.
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 FundInternational Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
:
| Year | GDP (millions of BTN Bhutanese ngultrum The ngultrum has been the currency of Bhutan since 1974. It is subdivided into 100 chhertum .-History:In 1974, the ngultrum was introduced, replacing the rupee at par... ) |
GDP (millions of USD) |
|---|---|---|
| 1985 | 2,166 | 175 |
| 1990 | 4,877 | 279 |
| 1995 | 9,531 | 294 |
| 2000 | 20,060 | 460 |
| 2005 | 36,915 | 828 |
| 2008 | 1280 |
Bhutan's hydropower
Hydropower
Hydropower, hydraulic power, hydrokinetic power or water power is power that is derived from the force or energy of falling water, which may be harnessed for useful purposes. Since ancient times, hydropower has been used for irrigation and the operation of various mechanical devices, such as...
potential and its attraction for tourists
Tourism
Tourism is travel for recreational, leisure or business purposes. The World Tourism Organization defines tourists as people "traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes".Tourism has become a...
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 TWhTWHTWH or twh could refer to:*Tennessee Walking Horse, a breed of horse* Toronto Western Hospital, a hospital in Toronto, Canada* TWH Bus & Coach, a bus company in Romford, England* Terrawatt-hour, measure of electrical energy, 1012 watt-hours...
(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 oilbbl/d (2005)
- consumption: 1200 oilbbl/d (2005 est.)
- exports: 0 oilbbl/d (2004)
- imports: 1138 oilbbl/d (2004)
Agriculture - products:
rice, corn, root crops, citrus, foodgrains, dairy products, eggs
Currency:
1 ngultrum
Bhutanese ngultrum
The ngultrum has been the currency of Bhutan since 1974. It is subdivided into 100 chhertum .-History:In 1974, the ngultrum was introduced, replacing the rupee at par...
(BTN) = 100 chetrum; Indian rupee (INR) is also legal tender
Historic exchange rates:
| 2006 | 2005 | 2004 | 2003 | 2002 | 2001 | 1999 | 1998 | 1997 | 1996 | 1995 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Ngultrum per US$1 | 45.279 | 44.101 | 45.317 | 46.583 | 48.61 | 47.186 | 43.055 | pekpek |
External links
- Global Economic Prospects: Growth Prospects for South Asia The World Bank, December 13, 2006