The 1999 CIA World Factbook. United States. Central Intelligence Agency

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       Bhutanese mission to the UN has consular jurisdiction in the US

       consulate(s) general: New York

      Diplomatic representation from the US: the US and Bhutan have no formal diplomatic relations, although informal contact is maintained between the Bhutanese and US Embassy in New Delhi (India)

      Flag description: divided diagonally from the lower hoist side corner; the upper triangle is yellow and the lower triangle is orange; centered along the dividing line is a large black and white dragon facing away from the hoist side

      Economy

      Economy—overview: The economy, one of the world's smallest and least developed, is based on agriculture and forestry, which provide the main livelihood for 90% of the population and account for about 40% of GDP. Agriculture consists largely of subsistence farming and animal husbandry. Rugged mountains dominate the terrain and make the building of roads and other infrastructure difficult and expensive. The economy is closely aligned with India's through strong trade and monetary links. The industrial sector is technologically backward, with most production of the cottage industry type. Most development projects, such as road construction, rely on Indian migrant labor. Bhutan's hydropower potential and its attraction for tourists are key resources. The Bhutanese Government has made some progress in expanding the nation's productive base and improving social welfare. Model education, social, and environment programs in Bhutan are underway with support from multilateral development organizations. Each economic program takes into account the government's desire to protect the country's environment and cultural traditions. Detailed controls and uncertain policies in areas like industrial licensing, trade, labor, and finance continue to hamper foreign investment.

      GDP: purchasing power parity—$1.9 billion (1998 est.)

      GDP—real growth rate: 6.5% (1998 est.)

      GDP—per capita: purchasing power parity?$1,000 (1998 est.)

      GDP—composition by sector: agriculture: 38% industry: 38% services: 24% (1997)

      Population below poverty line: NA%

      Household income or consumption by percentage share:

       lowest 10%: NA%

       highest 10%: NA%

      Inflation rate (consumer prices): 7.4% (1997 est.)

      Labor force: NA

       note: massive lack of skilled labor

      Labor force—by occupation: agriculture 93%, services 5%, industry

       and commerce 2%

      Unemployment rate: NA%

      Budget:

       revenues: $146 million

       expenditures: $152 million, including capital expenditures of $NA

       (FY95/96 est.)

       note: the government of India finances nearly three-fifths of

       Bhutan's budget expenditures

      Industries: cement, wood products, processed fruits, alcoholic

       beverages, calcium carbide

      Industrial production growth rate: 9.3% (1996 est.)

      Electricity—production: 1.717 billion kWh (1996) note: exports electricity to India

      Electricity—production by source: fossil fuel: 0.41% hydro: 99.59% nuclear: 0% other: 0% (1996)

      Electricity—consumption: 246 million kWh (1996)

      Electricity—exports: 1.475 billion kWh (1996)

      Electricity—imports: 4 million kWh (1996)

      Agriculture—products: rice, corn, root crops, citrus, foodgrains; dairy products, eggs

      Exports: $99 million (f.o.b., 1997 est.)

      Exports—commodities: cardamom, gypsum, timber, handicrafts, cement, fruit, electricity (to India), precious stones, spices

      Exports—partners: India 94%, Bangladesh

      Imports: $131 million (c.i.f., 1997 est.)

      Imports—commodities: fuel and lubricants, grain, machinery and parts, vehicles, fabrics, rice

      Imports—partners: India 77%, Japan, UK, Germany, US

      Debt—external: $87 million (1996)

      Economic aid—recipient: $73.8 million (1995)

      Currency: 1 ngultrum (Nu) = 100 chetrum; note—Indian currency is also legal tender

      Exchange rates: ngultrum (Nu) per US$1—42.508 (January 1999), 41.259 (1998), 36.313 (1997), 35.433 (1996), 32.427 (1995), 31.374 (1994); note—the Bhutanese ngultrum is at par with the Indian rupee

      Fiscal year: 1 July—30 June

      Communications

      Telephones: 4,620 (1991 est.)

      Telephone system:

       domestic: domestic telephone service is very poor with very few

       telephones in use

       international: international telephone and telegraph service is by

       landline through India; a satellite earth station was planned (1990)

      Radio broadcast stations: AM 0, FM 1, shortwave 1 (1998)

      Radios: 23,000 (1989 est.)

      Television broadcast stations: 0 (1997)

      Televisions: 200 (1985 est.)

      Transportation

      Railways: 0 km

      Highways: total: 3,285 km paved: 1,994 km unpaved: 1,291 km (1996 est.)

      Ports and harbors: none

      Airports: 2 (1998 est.)

      Airports—with paved runways:

       total: 1

       1,524 to 2,437 m: 1 (1998 est.)

      Airports—with unpaved runways:

       total: 1

       914 to 1,523 m: 1 (1998 est.)

      Military

      Military branches: Royal Bhutan Army, Palace Guard, Militia,

       Royal Police Force

      Military manpower—military age: 18 years of age

      Military manpower—availability:

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