Short facts about the economy in Bhutan

Economy - overview:

The economy, one of the world's smallest and least developed, is based on agriculture and forestry, which provide the main livelihood for more than 90% 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. 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 areas like industrial licensing, trade, labor, and finance continue to hamper foreign investment.

GDP:	purchasing power parity - $2.3 billion (2000 est.)

GDP - real growth rate:

6% (2000 est.)

GDP - per capita:

purchasing power parity - $1,100 (2000 est.)

GDP - composition by sector:

agriculture:  38% industry:  37% services:  25% (2000 est.)

Population below poverty line:

NA%

Household income or consumption by percentage share:

lowest 10%:  NA% highest 10%:  NA%

Inflation rate (consumer prices):

7% (2000 est.)

Labor force:

NA note:  massive lack of skilled labor

Labor force - by occupation:

agriculture 93%, services 5%, industry and commerce 2%

Unemployment rate:

NA%

Budget:

revenues:  $146 million expenditures:  $152 million, including capital expenditures of $NA (FY95/96 est.) note:  the government of India finances nearly three-fifths of Bhutan's budget expenditures

Industries:

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

Industrial production growth rate:

9.3% (1996 est.)

Electricity - production:

1.856 billion kWh (1999)

Electricity - production by source:

fossil fuel:  0.05% hydro:  99.95% nuclear:  0% other:  0% (1999)

Electricity - consumption:

191.1 million kWh (1999)

Electricity - exports:

1.55 billion kWh (1999)

Electricity - imports:

15 million kWh (1999)

Agriculture - products:

rice, corn, root crops, citrus, foodgrains; dairy products, eggs

Exports:

$154 million (f.o.b., 2000 est.)

Exports - commodities:

cardamom, gypsum, timber, handicrafts, cement, fruit, electricity (to India), precious stones, spices

Exports - partners:

India 94%, Bangladesh

Imports:

$269 million (c.i.f., 2000 est.)

Imports - commodities:

fuel and lubricants, grain, machinery and parts, vehicles, fabrics, rice

Imports - partners:

India 77%, Japan, UK, Germany, US

Debt - external:

$120 million (1998)

Economic aid - recipient:

$73.8 million (1995)

Currency:

ngultrum (BTN); Indian rupee (INR)

Currency code:

BTN; INR

Exchange rates:

ngultrum per US dollar - 46.540 (January 2001), 44.942 (2000), 43.055 (1999), 41.259 (1998), 36.313 (1997), 35.433 (1996); note - the Bhutanese ngultrum is at par with the Indian rupee which is also legal tender

Fiscal year:

1 July - 30 June

Source: World Factbook