Bhutan's small economy is based largely on hydropower, agriculture, and forestry, which provide the main livelihood for more than half of the population.
The report further emphasized the need for the government to create more employment, focus on infrastructure and rethink its dependency on migrant labor.
According to the ADB report, the slowdown could affect tourism and industrial development due to the reluctance of foreign investors to invest more capital. However, as far as the 10th five-year plan was concerned, the slowdown would not have any direct impact on the plan.
Since Bhutan shares a close trade and economic relationship with India, the impact of the slowdown is not expected to be as severe as other countries. The dependency on a single sector is a potential risk factor, the report states. As an alternative revenue generation sector, the government is promoting tourism, which also hopes to generate employment.
The advantage of WTO membership is that it will allow Bhutan access to the global markets and improve its import capabilities. On gaining WTO membership, Bhutan will have to reduce tariffs on imported goods.
This is not expected to have a major impact since Bhutan enjoys a free-trade agreement with India that facilitates imports.
The low rank in the ease of doing business scale is what is hampering the growth of private sector industries.
The survey further showed that Bhutan, in comparison with its South Asian counterparts, is better placed to enforce contracts, employ workers and register properties, but performs below par in ease of doing business, getting credit and protecting investors.sector.
This boost to economic activity comes Bhutan’s financial sector compares relatively well with the rest of South Asia, with a private credit ratio of percent of GDP in , slightly above the South Asia Bhutan: Country Snapshots. -To. Bhutan Industry Sectors: Bhutan’s Industries The global economic crisis, like most countries, also affected Bhutan.
According to the ADB report, the slowdown could affect tourism and industrial development due to the reluctance of foreign investors to invest more capital. 2 Recent Developments Real Sector Real economic growth was above 6 percent in /09, lower than that of the past couple of years.
Bhutan averaged about 9 percent annual economic growth during the Ninth Five-Year Plan (9FYP. economic and social implications of various energy efficiency improvement interventions. A recursive dynamic CGE model was constructed to estimate the macroeconomic impacts of sectoral energy efficiency measures in Bhutan.
Economy of Bhutan's wiki: The economy of Bhutan, one of the world's smallest and least developed countries, is based on agriculture and forestry, which provide the .
Bhutan’s economy is mostly based on agriculture, which together with livestock keeping is the main source of livelihood for over 80% of the population. The country hardly knows real industry, exept forestry and cottage building.