Flag description: divided diagonally from the lower hoist side corner; the upper triangle is yellow and the lower triangle is orange; centered along the dividing line is a large black and white dragon facing away from the hoist side
@Bhutan:Economy
Economy-overview: 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. GDP growth averaged 5% per year in 1991-95, with information not yet available for 1996-97. Detailed controls and uncertain policies in areas like industrial licensing, trade, labor, and finance continue to hamper foreign investment.
GDP: purchasing power parity-$1.3 billion (1995 est.)
GDP-real growth rate: 6.9% (1995 est.)
GDP-per capita: purchasing power parity-$730 (1995 est.)
GDP-composition by sector: agriculture: 42% industry: 32% services: 26% (1995 est.)
Inflation rate-consumer price index: 7% (FY96/97 est.)
Labor force: NA by occupation: agriculture 93%, services 5%, industry and commerce 2% note: massive lack of skilled labor
Unemployment rate: NA%