s) general: New York
honorary consulate(s): San Francisco; Washington, DC

US diplomatic representation: no formal diplomatic relations, although
informal contact is maintained between the Bhutanese and US Embassy in
New Delhi (India)

Flag: divided diagonally from the lower hoist side corner; the upper
triangle is orange and the lower triangle is red; centered along the
dividing line is a large black and white dragon facing away from the
hoist side

@Bhutan:Economy

Overview: The economy, one of the world's least developed, is based on
agriculture and forestry, which provide the main livelihood for 90% of
the population and account for about half 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 small and 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; however,
the government limits the number of tourists to 4,000 per year to
minimize foreign influence. Much of the impetus for growth has come
from large public-sector companies. Nevertheless, in recent years,
Bhutan has shifted toward decentralized development planning and
greater private initiative. The government privatized several large
public-sector firms, is revamping its trade regime and liberalizing
administerial procedures over industrial licensing. The government's
industrial contribution to GDP decreased from 13% in 1988 to about 11%
in 1993.

National product: GDP - purchasing power parity - $1.2 billion (1994
est.)

National product real growth rate: 5% (1994 est.)

National product per capita: $700 (1994 est.)

Inflation rate (consumer prices): 10% (October 1994)

Unemployment rate: NA%

Budget:
revenues: $52 million
expenditures: $150 million, including capital expenditures of $95
million (FY93/94 est.)
note: the government of India finances nearly three-fifths of Bhutan's
budget expenditures

Exports: $66.8 million (f.o.b., FY93/94)
commodities: cardamon, gypsum, timber, handicrafts, cement, fruit,
electricity (to India), precious stones, spices
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