Economic Roadmap Needed To Steer Bhutan Towards Higher GDP Growth


The Lyonchhen said that the economic figures will improve in 2020 as 70 percent of the capital investments still lie unused.

A monk walks on a suspension bridge with colourful prayer flags in Bhutan. (Source: Tripadvisor)


By Tenzing Lamsang The Bhutanese


With Bhutan’s GDP growth rate hitting its second lowest recorded low of 3.03 percent in 2018, the situation looks bleak.

This is compounded by the slowing of credit due to a liquidity crunch and its impact on large sections of the private sector.

According to the Finance Minister, Namgay Tshering as well as Prime Minister Dr Lotay Tshering, both felt that growth in the short term will pick up from 2020 due to a host of government activities.

Bhutan’s GDP growth in the past 2 years

Lyonpo Namgay said that GDP growth in 2019 has been predicted at 7.5 percent.


Infographic: CEIC Data


However, a senior NSB official associated with the 2018 GDP report said that in 2019, Bhutan’s GDP would hover around or even below 4 percent.

He also added that GDP in the country is driven by public sector investments while in the private sector, it has more to do with construction and infrastructure development.

The Finance Minister said that the government has allocated budget for both the central agencies and local government. Many infrastructure development look set to be taking place.

Bhutan’s economic performance mirrors India’s

Moreover, any dip in the Indian economy also leads to a dip in the Bhutanese economy.


Bhutan - the country which sparked worldwide interest in its unique index, the Gross National Happiness (GNH) as a measurement of progress rather than using the conventional Gross National Product (GDP). Sharaad Kuttan and Melisa Idris speak to Thakur S. Powdyel, the former Education Minister of Bhutan.

Source: Youtube/Astro Awani 


The trend is that Bhutanese economy cannot pick up when the Indian economy starts dipping as the Indian economy gets mirrored in the Bhutanese economy about five to six months later.

The government will have its task cut out as figures coming out from India show that this could be India’s worst economic slowdown in the last three decades due to deep structural and financial issues.

Consultations with experts from the Macro Finance Coordination Committee (MFCC) were sought to provide some suggestions on shock absorbers in the short term, so that the Bhutanese economy does not mirror what is happening in New Delhi.

The Lyonchhen also said that the economic figures will improve in the coming year as 70 percent of the capital investments still lie unused for the financial year, with only 50 percent of the time remaining.

2020 will see the implementation of 25 percent of the capital works coming to around Nu 28 bn. The Lyonchhen added that his bigger worry is the long term and the need for a good economic roadmap.


This article first appeared in The Bhutanese and has been edited for Daily Bhutan.



Related Posts

Bhutan’s GDP Growth Projected By IMF To Be Above Global Average

According to the World Bank, Bhutan's GDP growth is expected to jump to 7.4 percent this fiscal year.

Oct 21, 2019 22:08

Bhutan Economic Forum for Innovative Transformation Conference...

The Bhutan Economic Forum for Innovative Transformation Conference was held from 16-18 July in Thimphu.

Jul 18, 2019 22:32

iMerit Bhutan Launched, Hopes To Create Far-Reaching...

iMerit strives to drive social and economic change by tapping into an under-resourced talent pool, thereby creating...

Sep 04, 2019 10:58

Transforming The Economy Through Tourism: A High Value, Low...

What measures must Bhutan take to prevent the destruction that challenges other niche destinations, in a world where a...

Apr 16, 2019 15:46

Catalyzing Bhutan’s Cottage And Small Industries As An Important...

Till date, there are 20,908 cottage and small industries which generate 96,177 jobs in Bhutan.

Jul 09, 2019 23:08

Bhutan To Revise 3rd Foreign Direct Investment Policy To...

Most of the FDI companies are in the hotel sector today, therefore it is important for us to diversify.

Mar 29, 2019 18:32



Australia supports Bhutan in its COVID-19 preparedness, response and recovery

Extending support to Bhutan in its fight against COVID-19, the Australian Government has supplied medical equipment in response to the Royal...

Sep 22, 2020 09:39

Virtual Tsechu in Bhutan amid Pandemic.

Tsechu (Festival ) is one of the biggest religious celebrations of the Bhutanese year in every district in Bhutan. Tsechu has been held...

Sep 21, 2020 12:38


The Heart Shaped Stone- Story to remember while you hike through Phobjikha Nature Trail.

Interesting Stories from the Trail

Sep 09, 2020 18:29

View from the Sky For Every Travellers Flying into Bhutan

Despite Boeing ranking Paro airport as 'one of the world's most difficult for takeoffs and landings, the views over the clear blue waters...

Aug 06, 2020 14:25


Football clubs in Bhutan gearing up for Bhutan Premier League (BPL) 2020

Bhutan Premier League (BPL), the top national football tournament in Bhutan is set to commence on August 1.

Jul 24, 2020 14:33

Karma – Female Archer From Bhutan Qualified For Tokyo 2020 Olympic Quota

Karma has been specialising in Olympics-style archery since 2009.

Nov 30, 2019 13:18


Bhutan- The Kingdom of Peppers

Bhutan is a country with the highest per-capita consumption of chilli.

Sep 26, 2020 09:15

Are Local Vendors Earning More Money Than the Civil Servant?

A Farmer from Lango, Paro gave up farming to be vendor while office goers are switching into agriculture as the remedy to curb their...

Jul 27, 2020 19:15


The Significance of Jela Dzong

The journey towards the most popular Druk Path Trek starts with a short climb up to Jela Dzong. Jela Dzong is perched on top of the...

Sep 19, 2020 13:57

The Longest Urban Hiking Trail from PangriZampa to Lungtenphu, Thimphu

This trail is a less explored pocket of paradise for trekkers and wanderers who are in search of natures hospitality and solitude away from...

Aug 05, 2020 10:40


Food on Wheels- First of its kind in Bhutan

The World's Largest Fast Food Restaurant Chains doesn't exist in Bhutan.

Mar 04, 2020 09:39

Amazing Stories from the Eastern Part of Bhutan

You can't say you have visited the eastern part of Bhutan unless you have experienced the following bizarre things.

Mar 02, 2020 19:02

Subscribe to our newsletter

Never miss out on new happenings and news stories!

Download Daily Bhutan Mobile App

Connecting with us just got easier!