Economy of Bhutan

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Economy of Bhutan
Currency	ngultrum (BTN); Indian rupee (INR)
Fiscal year	1 July - 30 June
Trade organisations	SAFTA
Statistics
GDP (PPP)	$2.9 billion (2003 est.) (175th [1])
GDP growth	8.8% (2005 est.)
GDP per capita	$1,400 (2003 est.)
GDP by sector	agriculture: 24.7%, industry: 37.2%, services: 38.1% (2005)
Inflation (CPI)	5.5% (2005 est.)
Pop below poverty line	31.7% (2003)
Gini index	no data
Labour force	no data (shortage of skilled labor)
Labour force by occupation	agriculture: 63%, industry: 6%, services: 31% (2004 est)
Unemployment	2.5% (2004)
Main industries	cement, wood products, processed fruits, alcoholic beverages, calcium carbide, tourism
Trading Partners
Exports	$186 million f.o.b. (2005)
Export goods	electricity (to India), cardamom, gypsum, timber, handicrafts, cement, fruit, precious stones, spices
Main partners	India 69.3%, Japan 9.1%, Germany 3.7% (2005)
Imports	$410 million c.i.f. (2005)
Imports goods	fuel and lubricants, grain, aircraft, machinery and parts, vehicles, fabrics, rice
Main Partners	India 75.3%, Hong Kong 16.1%, Mexico 4.9% (2005)
Public finances
Public debt	81.4% of GDP (2004)
Revenues	$272 million (2005)
Expenses	$350 million (India finances 3/5 of Bhutan's expenditures) (2005)
Economic aid	$78 million (India and other nations) (2004)
Main source [2] All values, unless otherwise stated, are in US dollars

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 90% of the population and account for about 40% of GDP. 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.

1 Macro-economic trend
2 Other statistics
3 References
4 External Links

[edit] Macro-economic trend

This is a chart of trend of gross domestic product of Bhutan at market prices estimated by the International Monetary Fund and EconStats with figures in millions of Bhutanese Ngultrums.

Year	Gross Domestic Product
1980	1,112
1985	2,391
1990	4,983
1995	10,064
2000	21,698

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 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.

[edit] Other statistics

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

Electricity:

production: 2.05 TWh (2004)
consumption: 526.5 GWh (2004)
exports: 1.4 TWh (2004) (exports electricity to India)
imports: 20 GWh (2004)

Electricity - production by source:

fossil fuel: 0.39%
hydro: 99.61%
nuclear: 0%
other: 0% (1998)

Oil:

production: 0 barrel/day (2004)
consumption: 1,160 barrel/day (2004 est.)
exports: NA barrel/day (2001)
imports: NA barrel/day (2001)

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

Currency: 1 ngultrum (BTN) = 100 chetrum; Indian ruppee (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	41.259	36.313	35.433	32.427
Note: the ngultrum is pegged to the Indian rupee

[edit] References

This article contains material from the CIA World Factbook which, as a U.S. government publication, is in the public domain. 2006
This article contains material from the US Department of State's Background Notes which, as a US government publication, is in the public domain.