The economy of Bhutan one of the world’s smallest and least developed countries, is based on agriculture and forestry, which provide the main livelihood for more than 60% of the population. Agriculture consists largely of substances farming 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. Most production in the industrial sector is 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.
The economy of Bhutan, one of the world’s smallest and least developed countries, is based on agriculture and forestry, which provide the main livelihood for more than 60% of the population.
GDP per capita: 2,362.58 USD (2013)
Gross domestic product: 1.781 billion USD (2013)
GDP growth rate: 2.0% annual change (2013
GNI per capita: 6,920 PPP dollars (2013
Gross national income: 5.219 billion PPP dollars (2013
Internet users: 29.9% of the population (2013)