Bhutan

Bhutan Economic Profile

Bhutan is a small-scale economy located in South Asia, with a GDP of approximately 3.8 billion dollars in 2023. The economy is supported by three pillars: agriculture, hydroelectric power, and tourism. Agriculture employs approximately 30% of the working population and focuses on cereal production such as rice and corn. Hydroelectric power is an important source of foreign currency through electricity exports to India, accounting for 15-20% of GDP. The tourism industry is also growing rapidly, and under the concept of "Gross National Happiness (GNH)," a high-value-added, low-environmental-impact tourism strategy is being advanced.

As recent developments, Bhutan is focusing on economic diversification. Since 2022, addressing inflationary pressure and fiscal deficits has become an issue, but efforts to accelerate digital transformation and investment in the IT industry are being made. Additionally, Bhutan is working on infrastructure development by leveraging participation in the Regional Comprehensive Economic Partnership (RCEP) and support from the Asian Development Bank.

A notable point is the unique development indicator of GNH. The stance of emphasizing not only economic growth but also cultural preservation, environmental protection, and good governance is highly evaluated by the international community. Simultaneously, addressing challenges as a least developed country (LDC), such as poverty reduction, job creation, and strengthening international competitiveness, will be important focal points in the future.