Bhutan

Economics, Political, and Trade Overview

Source: Feb 10, 2022 Economist Intelligence Unit

Bhutan - In Short.

Overview of Bhutan

Following Britain’s victory in the 1865 Duar War, Britain and Bhutan signed the Treaty of Sinchulu, under which Bhutan would receive an annual subsidy in exchange for ceding land to British India. Ugyen WANGCHUCK – who had served as the de facto ruler of an increasingly unified Bhutan and had improved relations with the British toward the end of the 19th century – was named king in 1907. Three years later, a treaty was signed whereby the British agreed not to interfere in Bhutanese internal affairs, and Bhutan allowed Britain to direct its foreign affairs. Bhutan negotiated a similar arrangement with independent India in 1949. The Indo-Bhutanese Treaty of Friendship returned to Bhutan a small piece of the territory annexed by the British, formalized the annual subsidies the country received, and defined India’s responsibilities in defense and foreign relations. Under a succession of modernizing monarchs beginning in the 1950s, Bhutan joined the UN in 1971 and slowly continued its engagement beyond its borders. In 2005, King Jigme Singye WANGCHUCK unveiled the draft of Bhutan’s first constitution – which introduced major democratic reforms – and held a national referendum for its approval. The King abdicated the throne in 2006 in favor of his son, Jigme Khesar Namgyel WANGCHUCK. In 2007, India and Bhutan renegotiated their treaty, eliminating the clause that stated that Bhutan would be “guided by” India in conducting its foreign policy, although Thimphu continues to coordinate closely with New Delhi. In 2008, Bhutan held its first parliamentary election in accordance with the constitution. Bhutan experienced a peaceful turnover of power following a parliamentary election in 2013, which resulted in the defeat of the incumbent party. In 2018, the incumbent party again lost the parliamentary election. Of the more than 100,000 ethnic Nepali – predominantly Lhotshampa – refugees who fled or were forced out of Bhutan in the 1990s, about 6,500 remain displaced in Nepal.
Value
Country Full Name
Bhutan
Country Code
BTN
Region
South Asia
Income Group
Lower middle income
Currency Unit
GDP
2315437338
Population
771612
Land Area
38140
Net National Income Per Capita
2482.518915
GDP per Capita (PPP)
11130.21623

2020 GDP Growth Rate (Current USD)

2020 GDP Per Capita (Current USD)

2020 Urbanization Rate (%)

2020 Total Fertility Rate (Birth Per Woman)

Doing Business Score (100= Most Friendly)

Bhutan - Economic

Economy of Bhutan

Bhutan’s small economy is based largely on hydropower, agriculture, and forestry, which provide the main livelihood for more than half the population. Because rugged mountains dominate the terrain and make the building of roads and other infrastructure difficult and expensive, industrial production is primarily of the cottage industry type. The economy is closely aligned with India’s through strong trade and monetary links and is dependent on India for financial assistance and migrant laborers for development projects, especially for road construction. Bhutan signed a pact in December 2014 to expand duty-free trade with Bangladesh.Multilateral development organizations administer most educational, social, and environment programs, and take into account the government’s desire to protect the country’s environment and cultural traditions. For example, the government is cautious in its expansion of the tourist sector, restricing visits to environmentally conscientious tourists. Complicated controls and uncertain policies in areas such as industrial licensing, trade, labor, and finance continue to hamper foreign investment.Bhutan’s largest export – hydropower to India – could spur sustainable growth in the coming years if Bhutan resolves chronic delays in construction. Bhutan’s hydropower exports comprise 40% of total exports and 25% of the government’s total revenue. Bhutan currently taps only 6.5% of its 24,000-megawatt hydropower potential and is behind schedule in building 12 new hydropower dams with a combined capacity of 10,000 megawatts by 2020 in accordance with a deal signed in 2008 with India. The high volume of imported materials to build hydropower plants has expanded Bhutan’s trade and current account deficits. Bhutan also signed a memorandum of understanding with Bangladesh and India in July 2017 to jointly construct a new hydropower plant for exporting electricity to Bangladesh.

Unemployment Rate

Inflation Rate

Bhutan - GDP Composition

GDP Composiiton & Value Added of Bhutan

Last Updated: Jan, 2021, Updated For 2020.

Bhutan - GDP, Value Added

Demographics of Bhutan

relatively even population distribution throughout
Geographic Location

Southern Asia, between China and India

Races

Ngalop (also known as Bhote) 50%, ethnic Nepali 35% (predominantly Lhotshampas), indigenous or migrant tribes 15%

Languages

Sharchopkha 28%, Dzongkha (official) 24%, Lhotshamkha 22%, other 26% (includes foreign languages) (2005 est.)

Religion

Lamaistic Buddhist 75.3%, Indian- and Nepali-influenced Hinduism 22.1%, other 2.6% (2005 est.)

Dependency & Expectancy of Bhutan

Last Updated: Jan, 2021

Dependency Ratio

Expectancy

Politics & Policies of Bhutan

2021 Policies Overview

Updated Coming in March 2021 after our team finish summarizing countries policy.

International Organizations

ADB, BIMSTEC, CP, FAO, G-77, IBRD, ICAO, IDA, IFAD, IFC, IMF, Interpol, IOC, IOM (observer), IPU, ISO (correspondent), ITSO, ITU, MIGA, NAM, OPCW, SAARC, SACEP, UN, UNCTAD, UNESCO, UNIDO, UNTSO, UNWTO, UPU, WCO, WHO, WIPO, WMO, WTO (observer)

Import of Bhutan

Export of Bhutan

Import Destination

Export Destination