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Bhutan ECONOMY
Salient Features: Underdeveloped economy with
ties to
India as a result of geographic position and historical
relationship. Predominantly agricultural; limited
industrial
activity; services--particularly related to tourism,
growing part
of economy. Development of hydroelectric capabilities for
domestic
use and export also increasingly important. Increasing
domestic
concern and international cooperation with respect to
environmental
protection and resource conservation. Foreign aid--once
100 percent
from India but increasingly from domestic sources,
European
countries, and international organizations (72.5 percent
in 1987-
92)--major component in economic development. Trade union
activity
illegal; less than 1 percent of population involved in
industrial
work.
Gross National Product (GNP): Nu3.9 billion
(1988, Nu--
ngultrum). Per capita GNP US$150.
Gross Domestic Product (GDP): Nu3.4 billion
(1988).
Agriculture: Including fishing and forestry:
46.2 percent
of GDP projected for 1991. Traditionally self-sufficient
in food
production, rice imports increasing in late 1980s.
Eighty-seven
percent of population involved in agriculture. Less than 6
percent
of land cultivable; most farms terraced or used illegal
tsheri (shifting cultivation). Major crops corn and
rice.
Cash crops oranges, apples, and cardamon. Livestock raised
throughout country. Fresh water and hatchery fishing
important
dietary supplement. Modest use of irrigation and
fertilizers.
Abundant forest resources--about 70 percent of country
covered with
forests; lumber industry 15 percent of GDP.
Industry: 26.4 percent of GDP projected for
1991. Only 1
percent of population involved in industry and
construction in late
1980s. Basic industries: handicrafts, cement, food
processing, wood
milling, and distilling; 400 small-scale cottage and
industrial
units. Limestone for cement production major mining and
quarrying
product. Hydroelectric power major energy producer.
Services: 29 percent of GDP projected for 1991.
Most
commercial services tourist-oriented plus
domestic-oriented
wholesale and retail trade. Tourism largest
foreign-exchange earner
(US$2 million in 1987).
Resources: High-grade limestone and slate;
marble,
dolomite, and graphite; deposits of copper, gypsum, lead,
tin,
tungsten, zinc, coal, beryl, mica, pyrites, tufa, and
talc.
Abundant hydroelectric power sources.
Foreign Trade: Principally with India. Total
exports in
1990 Nu1.2 billion in 1990, primarily electricity and
processed raw
materials. Total imports in Nu1.8 billion in 1990,
primarily rice
and manufactured goods.
Balance of Payments: Early 1980s trade
imbalance--imports
80 percent of total trade--decreased as decade progressed.
Exports
represented 40 percent, imports 60 percent of total annual
trade in
1990.
Foreign Aid: Once 100 percent dependent on India
for
development funds and government revenue; since 1960s
major inputs
from Colombo Plan, World Bank, United Nations, and private
sources,
plus domestic contributions, decreased Indian aid to 27.5
percent
(Nu2.6 billion) of total input in Sixth Development Plan
(1987-92).
Currency/Exchange Rate: Ngultrum (Nu). US$1 =
18.329
(January 1991). Ngultrum on par with Indian rupee.
Fiscal Year: July 1 to June 30.
Data as of September 1991
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