rge black and white dragon facing away from
the hoist side

Economy 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 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. Bhutan's hydropower potential and its attraction for
tourists are key resources. 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 like industrial licensing, trade, labor,
and finance continue to hamper foreign investment.

GDP (purchasing power parity):
$2.9 billion (2003 est.)

GDP - real growth rate:
5.3% (2003 est.)

GDP - per capita:
purchasing power parity - $1,400 (2003 est.)

GDP - composition by sector:
agriculture: 45%
industry: 10%
services: 45% (2002 est.)

Labor force:
NA
note: massive lack of skilled labor

Labor force - by occupation:
agriculture 93%, industry and commerce 2%, services 5%

Unemployment rate:
NA

Population below poverty line:
NA

Household income or consumption by percentage share:
lowest 10%: NA
highest 10%: NA

Inflation rate (consumer prices):
3% (2002 est.)

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

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

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