The economic architecture of Bhutan is substantial, anchored by a Gross Domestic Product (GDP) of approximately $2.9B
2022
. This places it as the 163rd largest economy out of 191 countries measured, underscoring its significance on the world stage. On a per capita basis, GDP stands at $3.71K
2022
, while its GDP adjusted for Purchasing Power Parity (PPP) is estimated at $11.76B, offering a clearer picture of the population's domestic purchasing power. The economy is experiencing a period of vigorous expansion, with a high growth rate of 5.2%
2022
, accompanied by a stable price environment, with inflation (CPI) contained at 2.8%.
2024
On the global stage, Bhutan's trade and financial dynamics reveal a complex interplay of international and domestic factors. The nation's economic activity is heavily reliant on foreign goods, running a considerable trade deficit with imports at 60.1% of GDP and exports at 25.5%
2022
. The investment climate attracts significant Foreign Direct Investment (FDI), with inflows constituting 0.29% of the economy
2022
. This performance positions the country 153rd globally out of 186 nations, confirming its status as a competitive destination for foreign capital. Furthermore, personal remittances from its diaspora are a vital component of the economy, amounting to a substantial $109.6M annually
2024
. The government operates under fiscal constraints, with a limited tax base that generates revenue equivalent to only 12.3% of GDP.
2020
The socio-economic landscape is characterized by a Gross National Income (GNI) per capita of $3,600
2022
, ranking the nation 130th out of 190. This figure provides a comprehensive measure of the average income per person, reflecting the nation's overall economic well-being. The labor market demonstrates considerable strength, with a low unemployment rate of 2.9%, suggesting conditions close to full employment.
2024
A key feature of the workforce is its concentration in the services sector, which accounts for 40.9% of total employment
2023
. Despite its economic standing, poverty remains a salient issue, with 12.4% of the population living below the national poverty line
2022
. The country achieves a relatively equitable distribution of income, reflected in a low Gini index of 28.5.
2022
In the environmental and energy sectors, the nation's policies and outcomes reflect its developmental priorities. Energy consumption per capita stands at 359.542 kg of oil equivalent
2007
, a metric that often correlates with industrial activity and living standards. The country is at the forefront of the global green transition, with renewable sources constituting a remarkable 82.5% of total final energy consumption
2022
. This commitment places it 179th among 190 countries, highlighting its relative progress in decarbonization. Total greenhouse gas emissions were last recorded at 3.25K tonnes of CO2 equivalent
2023
, a key factor in its national climate strategy and international obligations.

Key Economic Insights

Macroeconomic Health

The economy exhibits robust health, characterized by a "Goldilocks" scenario of strong growth, low inflation, and low unemployment.

Trade & Investment Profile

The orientation towards global trade and foreign investment is a defining feature of the economic landscape.

Social Equity & Distribution

Ensuring equitable distribution of economic gains is fundamental for long-term social and political stability.

Energy & Sustainability

A global leader in the green transition, the country leverages its strong commitment to renewable energy as a key economic and diplomatic advantage.

More About This Country

Neighbors & Regional Peers

Note: The information on this page has been compiled from authoritative sources. While every effort is made to ensure accuracy, please note that some figures may not be current or entirely precise.