Economy
The economy of Bhutan is small and predominantly driven by agriculture, hydropower, and tourism. Despite being one of the least developed economies in the world, Bhutan has made significant progress in recent years, with its Gross Domestic Product (GDP) growing steadily, and poverty rates declining.
Agriculture is the backbone of Bhutan’s economy, with a large proportion of the population engaged in farming and livestock activities. The country is known for its high-quality agricultural products, particularly its rice, potatoes, and dairy products.
Hydropower is another key sector in Bhutan, with the country exporting a large proportion of its hydropower production to neighboring India. This sector provides a significant source of government revenue and has attracted significant investment into the country.
Tourism is a growing sector in Bhutan, with the country attracting increasing numbers of visitors, particularly from high-income countries, due to its unique cultural heritage and natural beauty.
Despite these strengths, Bhutan still faces significant economic challenges, including a small domestic market, limited access to finance, and a lack of human capital and skilled workers. The Bhutanese government is committed to addressing these challenges and to promoting economic development through a combination of investment and economic reform.
Overall, Bhutan’s economy is characterized by its small size, its focus on agriculture and hydropower, and its commitment to sustainable development. The Bhutanese government is committed to promoting the country’s economic development and to ensuring that the benefits of growth are widely shared.