Bhutan: Economy

Robust economic expansion in Bhutan is supported by rapid growth in industry and services. One driver of growth in Fiscal Year 2016 (ended 30 June 2016) was the construction of three major hydropower projects, which has been under way for several years, and another was hydropower generation mainly for export, which rose by 14.8% from a year earlier. Tourism earnings declined by 9.5% to $69.4 million because of concerns over earthquakes in the Himalayas following the devastating quakes in Nepal in April and May 2015, and because tourist agencies often sell combined tours to Nepal and Bhutan. Nevertheless, the service sector is expected to be shored up by robust wholesale trade in construction-related goods and intensified government spending. Read more from Asian Development Outlook 2016 Update


Economic forecasts for South Asian countries

Country 2016 2017
Afghanistan 2.0 3.0
Bangladesh 7.1 6.9
Bhutan 6.4 6.1
India 7.4 7.8
Maldives 3.5 3.9
Nepal 0.8 4.8
Pakistan 4.7 5.2
Sri Lanka 5.0 5.5
Average 6.9 7.3
Country 2016 2017
Afghanistan 4.5 6.0
Bangladesh 5.9 6.1
Bhutan 3.3 4.6
India 5.4 5.8
Maldives 1.2 1.4
Nepal 9.9 8.5
Pakistan 2.9 4.7
Sri Lanka 4.5 5.0
Average 5.2 5.7
Country 2016 2017
Afghanistan 4.5 1.1
Bangladesh 1.7 1.0
Bhutan -29.9 -27.0
India -1.4 -1.8
Maldives -10.1 -10.0
Nepal 6.2 4.6
Pakistan -0.9 -1.6
Sri Lanka -2.0 -2.0
Average -1.1 -1.6

Source: Asian Development Outlook 2016 Update