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Bhutan’s GDP growth up

19 November 2009

As per the national accounts statistics of the National Statistical Bureau, the real GDP growth increased to 21.4 percent in 2007 from 6.3 percent in 2006. This growth was triggered by the substantial growth in the secondary sector. During the fiscal year 2007-2008, Bhutan experienced a trade deficit of Nu 2.9 billion to a trade surplus of Nu 2.1 billion as in 2006-2007. This was due to the growth in the import by 16.4 percent.
In terms of the composition of trade, hydropower continues to remain Bhutan’s dominant export. The total export earnings from the hydropower in the second quarter of 2009 amounted to Nu 2 billion while the total revenue from the domestic sales amounted to Nu 0.2 billion. The export earnings of electricity reached the highest in the third quarter of the year due to monsoon and the lowest in the first quarter of the year.
Annual inflation as measured by the consumer price index (CPI) was recorded at three percent in the second quarter of 2009 from 8.9 percent in the same quarter of 2008. As of March, 2009, there was a decrease in the general prices of food items from 8.8 to 6.7. At the same time, non-food prices decreased to 1.1 percent from 6.7 percent.
As of June, 2009, the total outstanding external debt stood at an equivalent of USD 713.7 million. The government of India is Bhutan’s leading creditor, followed by the ADB with USD 119 million, and World Bank with USD 109.7 million. Bhutan owed equivalent of USD 64.8 million debt to the government of Austria.
In exchange rate developments, the ngultrum averaged Nu 49.1 a US dollar in the second quarter of 2009. This was an appreciation by 1.4 percent over the previous quarter. Among other major currencies, the euro appreciated against the USD by 4.5 percent, and yen depreciated by 3.4 percent from the second quarter average of 2009.
The total fiscal budget outlay for fiscal years 2008-2009, revised as of December 2008, was recorded at Nu 24.9 billion, higher by Nu 2.6 billion as compared to actual budget outlay for fiscal years 2007-2008.

As per the national accounts statistics of the National Statistical Bureau, the real GDP growth increased to 21.4 percent in 2007 from 6.3 percent in 2006. This growth was triggered by the substantial growth in the secondary sector. During the fiscal year 2007-2008, Bhutan experienced a trade deficit of Nu 2.9 billion to a trade surplus of Nu 2.1 billion as in 2006-2007. This was due to the growth in the import by 16.4 percent.

In terms of the composition of trade, hydropower continues to remain Bhutan’s dominant export. The total export earnings from the hydropower in the second quarter of 2009 amounted to Nu 2 billion while the total revenue from the domestic sales amounted to Nu 0.2 billion. The export earnings of electricity reached the highest in the third quarter of the year due to monsoon and the lowest in the first quarter of the year.

Annual inflation as measured by the consumer price index (CPI) was recorded at three percent in the second quarter of 2009 from 8.9 percent in the same quarter of 2008. As of March, 2009, there was a decrease in the general prices of food items from 8.8 to 6.7. At the same time, non-food prices decreased to 1.1 percent from 6.7 percent.

As of June, 2009, the total outstanding external debt stood at an equivalent of USD 713.7 million. The government of India is Bhutan’s leading creditor, followed by the ADB with USD 119 million, and World Bank with USD 109.7 million. Bhutan owed equivalent of USD 64.8 million debt to the government of Austria.

In exchange rate developments, the ngultrum averaged Nu 49.1 a US dollar in the second quarter of 2009. This was an appreciation by 1.4 percent over the previous quarter. Among other major currencies, the euro appreciated against the USD by 4.5 percent, and yen depreciated by 3.4 percent from the second quarter average of 2009.

The total fiscal budget outlay for fiscal years 2008-2009, revised as of December 2008, was recorded at Nu 24.9 billion, higher by Nu 2.6 billion as compared to actual budget outlay for fiscal years 2007-2008.

By Gopal S Mongar

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Posted by Bhutan Observer · Filed Under Economy, News 

Comments

One Response to “Bhutan’s GDP growth up”

  1. Celso Nunes on November 23rd, 2009 11:46 pm

    Spectacular growing, as has been happening in the last years to just a little number of countries (Angola, Azerbaijan, Turkmenistan and China). All of them are industrial-driven and may be sustained in the medium-term if accompanied of social policies (specially educational and health care infrastructures), science development policies and the development of democracy patterns.

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