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.

purchasing power parity - $2.1 billion (1999 est.)

7% (1999 est.)

purchasing power parity - $1,060 (1999 est.)

agriculture: 38%
industry: 37%
services: 25% (1998)

NA%

lowest 10%: NA%
highest 10%: NA%

9% (1998)

NA
note: massive lack of skilled labor

agriculture 93%, services 5%, industry
and commerce 2%

NA%

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

cement, wood products, processed fruits, alcoholic
beverages, calcium carbide

9.3% (1996 est.)

1.788 billion kWh (1998)

fossil fuel: 0.39%
hydro: 99.61%
nuclear: 0%
other: 0% (1998)

345 million kWh (1998)

1.339 billion kWh
note: exports electricity to India (1998)

21 million kWh (1998)

rice, corn, root crops, citrus, foodgrains;
dairy products, eggs

$111 million (f.o.b., 1998)

cardamom, gypsum, timber, handicrafts, cement,
fruit, electricity (to India), precious stones, spices

India 94%, Bangladesh

$136 million (c.i.f., 1998)

fuel and lubricants, grain, machinery and
parts, vehicles, fabrics, rice

India 77%, Japan, UK, Germany, US

$120 million (1998)

$73.8 million (1995)

1 ngultrum (Nu) = 100 chetrum; note - Indian currency is
also legal tender

ngultrum (Nu) per US$1 - 43.552 (January 2000), 43.055
(1999), 41.259 (1998), 36.313 (1997), 35.433 (1996), 32.427 (1995);
note - the Bhutanese ngultrum is at par with the Indian rupee

1 July - 30 June