| variable | 1980-1989 | 1990-1999 | 2000-2007 | 2008-2009 | 2010-2019 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| real gdp growth | 9.96 | 4.99 | 8.15 | 8.2 | 4.85 | 4.9 | 6.1 | 7.1 | 7.5 | 6.3 |
| CPI % | 8.67 | 8.59 | 4.2 | 5.95 | 6.01 | 4.5 | 4.3 | 2.6 | 4.0 | 4.2 |
| Unemployment rate | - | - | 3.03 | 3.65 | 2.95 | 3.5 | - | - | - | - |
| Debt/GDP % | - | 42.69 | 67.92 | 58.4 | 92.85 | 117.2 | 108.7 | 103.6 | 120.3 | 122.9 |
| Current account balance/GDP % | -33.12 | -2.95 | -12.14 | -13.4 | -23.12 | -35.0 | -20.4 | -18.9 | -19.3 | -21.9 |
Data derived from World Economic Outlook Database. To see main macroeconomic indicator in graphs click here
After Britain’s victory in the 1865 Duar War, Britain and Bhutan signed the Treaty of Sinchulu, under which Bhutan would receive an annual subsidy in exchange for ceding land to British India. Ugyen WANGCHUCK -- who had served as the de facto ruler of an increasingly unified Bhutan and had improved relations with the British toward the end of the 19th century -- was named king in 1907. Three years later, a treaty was signed whereby the British agreed not to interfere in Bhutanese internal affairs, and Bhutan allowed Britain to direct its foreign affairs. Bhutan negotiated a similar arrangement with independent India in 1949. The Indo-Bhutanese Treaty of Friendship returned to Bhutan a small piece of the territory annexed by the British, formalized the annual subsidies the country received, and defined India's responsibilities in defense and foreign relations. Under a succession of modernizing monarchs beginning in the 1950s, Bhutan joined the UN in 1971 and slowly continued its engagement beyond its borders. In 2005, King Jigme Singye WANGCHUCK unveiled the draft of Bhutan's first constitution -- which introduced major democratic reforms -- and held a national referendum for its approval. The King abdicated the throne in 2006 in favor of his son, Jigme Khesar Namgyel WANGCHUCK. In 2007, India and Bhutan renegotiated their treaty, eliminating the clause that stated that Bhutan would be "guided by" India in conducting its foreign policy, although Thimphu continues to coordinate closely with New Delhi. In 2008, Bhutan held its first parliamentary election in accordance with the constitution. Bhutan experienced a peaceful turnover of power following a parliamentary election in 2013, which resulted in the defeat of the incumbent party. In 2018, the incumbent party again lost the parliamentary election. In 2024, of the more than 100,000 ethnic Nepali -- predominantly Lhotshampa -- refugees who fled or were forced out of Bhutan in the 1990s, about 6,500 remain displaced in Nepal.
Area: 38,394 sq km km2
Climate: varies; tropical in southern plains; cool winters and hot summers in central valleys; severe winters and cool summers in Himalayas
Natural resources: timber, hydropower, gypsum, calcium carbonate
Groups: Ngalop (also known as Bhote) 50%, ethnic Nepali 35% (predominantly Lhotshampas), indigenous or migrant tribes 15%
Languages:
Religions: Lamaistic Buddhist 75.3%, Indian- and Nepali-influenced Hinduism 22.1%, other 2.6% (2005 est.)
Capital: Thimphu
Government type: constitutional monarchy
Chief of state: King Jigme Khesar Namgyel WANGCHUCK (since 14 December 2006)
Head of government: Prime Minister Tshering TOBGAY (since 28 January 2024)
Description: Parliament (Chi Tshog) - bicameral
hydropower investments spurring economic development; Gross National Happiness economy; sharp poverty declines; low inflation; strong monetary and fiscal policies; stable currency; fairly resilient response to COVID-19; key economic and strategic relations with India; climate vulnerabilities
cement, wood products, processed fruits, alcoholic beverages, calcium carbide, tourism
GDP by sector: Agriculture: 15% (2023 est.), Industry: 29.6% (2023 est.), Services: 52.7% (2023 est.)
Export partners: India 92%, Italy 4%, Indonesia 1%, China 1%, Singapore 0% (2023)
Export commodities: iron alloys, aircraft, dolomite, semi-finished iron, cement (2023)
Import partners: India 82%, Singapore 8%, China 5%, Thailand 2%, Indonesia 1% (2023)
Import commodities: refined petroleum, gold, plastics, broadcasting equipment, iron reductions (2023)
Southern Asia, between China and India
Information derived from worldfactbook.io (Lupon Media), open successor to the CIA World Factbook. Data sourced from World Bank, IMF, UN and other international organizations.