Bhutan is a small landlocked nation located in the Himalayas between India and China. The country is known for its pristine environment, unique culture, and commitment to Gross National Happiness. Despite its small size, Bhutan is a dynamic economy and has made remarkable progress in recent years. The country has achieved impressive economic growth, poverty reduction, and improved access to basic services. This article will explore the Bhutan economy, its key sectors, and its prospects for the future.
Overview of the Bhutan Economy
Bhutan is a small, landlocked country with a population of approximately 800,000 people. The country has a Gross Domestic Product (GDP) of $2.5 billion and a per capita GDP of $3,400, making it one of the least developed countries in the world. The Bhutanese economy is primarily based on agriculture, forestry, and hydroelectric power. Agriculture is the main source of employment, accounting for around 40% of the total workforce. Forestry and hydroelectric power are also important sources of income, contributing 15% and 25% respectively.
The Bhutanese economy has experienced rapid growth in recent years. Between 2006 and 2016, the country’s GDP grew at an average annual rate of 8.2%, making it one of the fastest growing economies in the world. This growth has been driven by strong public investment in infrastructure, education, and health care. In addition, Bhutan has benefited from increased foreign investment and access to regional markets.
Key Sectors
Agriculture is the mainstay of the Bhutanese economy, accounting for around 40% of the total workforce. The sector is dominated by subsistence farming, with most farmers growing crops such as rice, maize, millet, wheat, and barley. Livestock rearing is also an important part of the agricultural sector, with cows, yaks, and goats being the most common animals.
Hydropower is another key sector of the Bhutanese economy. The country is blessed with abundant water resources and has harnessed them to generate electricity. Hydropower currently accounts for around 25% of the country’s total electricity generation and is a major source of foreign exchange earnings.
Tourism is an increasingly important sector of the Bhutanese economy. The country is known for its pristine environment, unique culture, and commitment to Gross National Happiness. Tourism has grown exponentially in recent years, with more than 200,000 visitors in 2017. The sector is a major source of foreign exchange earnings and has the potential to generate further economic growth and employment opportunities.
Outlook
The Bhutanese economy is expected to continue to grow in the coming years. The country has made impressive progress in recent years, achieving impressive economic growth, poverty reduction, and improved access to basic services. In addition, Bhutan has benefited from increased foreign investment and access to regional markets. Going forward, the country will need to focus on developing its infrastructure, improving access to education and health care, and creating more jobs.
Conclusion
Bhutan is a dynamic economy with impressive potential. The country has achieved remarkable progress in recent years, with impressive economic growth, poverty reduction, and improved access to basic services. The country is blessed with abundant natural resources and has harnessed them to generate electricity and foreign exchange earnings. Going forward, the country will need to focus on developing its infrastructure, improving access to education and health care, and creating more jobs. With the right policies and investments, Bhutan has the potential to become a prosperous and prosperous nation.