Economy - overview:
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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 40% 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 is dependent 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. 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. Complicated controls and uncertain policies in areas such as industrial licensing, trade, labor, and finance continue to hamper foreign investment. The import of equipment and fuel to build hydropower plants is leading to large trade and current account deficits, though new hydropower projects and electricity exports to India are creating employment and will probably sustain growth in the coming years. GDP has rebounded strongly since the global recession began in 2008.
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GDP (purchasing power parity):
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$4.813 billion (2012 est.)
country comparison to the world: 171
$4.379 billion (2011 est.)
$4.16 billion (2010 est.)
note:
data are in 2012 US dollars
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GDP (official exchange rate):
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$1.214 billion (2012 est.)
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GDP - real growth rate:
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9.9% (2012 est.)
country comparison to the world: 11
5.3% (2011 est.)
11.8% (2010 est.)
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GDP - per capita (PPP):
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$6,500 (2012 est.)
country comparison to the world: 141
$5,900 (2011 est.)
$5,700 (2010 est.)
note:
data are in 2012 US dollars
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GDP - composition by sector:
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agriculture: 15.1%
industry:
34.2%
services:
37.6% (2012 est.)
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Labor force:
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299,900
country comparison to the world: 165
note:
major shortage of skilled labor (2008)
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Labor force - by occupation:
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agriculture: 43.7%
industry:
39.1%
services:
17.2% (2004 est.)
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Unemployment rate:
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4% (2009)
country comparison to the world: 31
2.5% (2004)
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Population below poverty line:
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23.2% (2008)
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Household income or consumption by percentage share:
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lowest 10%: 2.3%
highest 10%:
37.6% (2003)
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Budget:
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revenues: $581.5 million
expenditures:
$610.6 million
note:
the government of India finances nearly one-quarter of Bhutan's budget expenditures (2012 est.)
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Taxes and other revenues:
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47.9% of GDP (2012 est.)
country comparison to the world: 21
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Budget surplus (+) or deficit (-):
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-2.4% of GDP (2012 est.)
country comparison to the world: 90
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Public debt:
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64% of GDP (2011 est.)
country comparison to the world: 42
55% of GDP (2010 est.)
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Inflation rate (consumer prices):
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8.3% (2012 est.)
country comparison to the world: 185
8.9% (2011 est.)
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Central bank discount rate:
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NA%
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Commercial bank prime lending rate:
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14.5% (31 December 2012 est.)
country comparison to the world: 51
14.5% (31 December 2011 est.)
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Stock of narrow money:
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$423.3 million (31 December 2012 est.)
country comparison to the world: 163
$387 million (31 December 2011 est.)
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Stock of broad money:
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$1.018 billion (31 December 2011 est.)
country comparison to the world: 169
$1.16 billion (31 December 2010 est.)
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Stock of domestic credit:
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$185.1 million (31 December 2012 est.)
country comparison to the world: 182
$206.5 million (31 December 2011 est.)
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Market value of publicly traded shares:
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$NA
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Agriculture - products:
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rice, corn, root crops, citrus; dairy products, eggs
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Industries:
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cement, wood products, processed fruits, alcoholic beverages, calcium carbide, tourism
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Industrial production growth rate:
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NA%
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Current account balance:
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-$312.1 million (2012 est.)
country comparison to the world: 84
-$354.9 million (2010 est.)
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Exports:
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$725.2 million (2012 est.)
country comparison to the world: 166
$665.3 million (2011 est.)
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Exports - commodities:
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electricity (to India), ferrosilicon, cement, calcium carbide, copper wire, manganese, vegetable oil
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Imports:
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$1.28 billion (2012 est.)
country comparison to the world: 174
$1.185 billion (2011 est.)
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Imports - commodities:
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fuel and lubricants, passenger cars, machinery and parts, fabrics, rice
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Debt - external:
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$1.275 billion (2011)
country comparison to the world: 149
$836 million (2009)
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Stock of direct foreign investment - at home:
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$NA
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Exchange rates:
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ngultrum (BTN) per US dollar -
53.28 (2012 est.)
46.67 (2011 est.)
45.73 (2010 est.)
46.68 (2009 est.)
43.51 (2008 est.)
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Fiscal year:
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1 July - 30 June
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