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

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

Economy

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 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.
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--$1.9 billion (1998 est.)

GDP--real growth rate: 6.5% (1998 est.)

GDP--per capita: purchasing power parity?$1,000 (1998 est.)

GDP--composition by sector:
agriculture: 38%
industry: 38%
services: 24% (1997)

Population below poverty line: NA%

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

Inflation rate (consumer prices): 7.4% (1997 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