Economy Bhutan
Economy - overview: The economy, one of the world's smallest and least developed, is based on agriculture and forestry, providing the main livelihood for more than 90% 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. 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. Detailed controls and uncertain policies in areas like industrial licensing, trade, labor, and finance continue to hamper foreign investment. Major hydroelectric projects will lead expansion of GDP in 2002 by an estimated 6%.
GDP: purchasing power parity - $2.5 billion (2001 est.)
GDP - real growth rate: 6% (2000 est.)
GDP - per capita: purchasing power parity - $1,200 (2001 est.)
GDP - composition by sector: agriculture: 45% industry: 20% services: 35% (2001 est.)
Population below poverty line: NA%
Household income or consumption by percentage share: lowest 10%: NA% highest 10%: NA%
Inflation rate (consumer prices): 7% (2000 est.)
Labor force: NA note: massive lack of skilled labor