Bhutan Import Data

Bhutan's Import/Export Overview and Domestic Market Update

Imports & Exports

• Top Trade Partners: Bhutan's major trading partners are India, Bangladesh, and Thailand, reflecting its strategic location and economic ties within South Asia.

• Top 5 Imports: Petroleum products, vehicles, machinery, pharmaceuticals, and electronics account for a significant portion of Bhutan's import bill, with petroleum products alone making up about 20% of total imports.

• Top 5 Exports: Hydropower, wood and wood products, calcium carbide, cement, and handicrafts are the leading exports, with hydropower contributing to over 60% of total exports, reflecting Bhutan's natural resource base and economic focus.

• Trade Balance: Bhutan faces a trade deficit, with imports far outweighing exports. Efforts are being made to boost export-oriented industries to address this imbalance.

• Trade Policies: Bhutan's trade policies are geared towards diversifying exports, reducing dependence on a few key products, and promoting regional trade agreements to enhance economic resilience.

Domestic Market

• Consumer Spending: Consumer spending in Bhutan is steady, with a growing middle class contributing to increased demand for goods and services, particularly in urban areas.

• Inflation & Interest Rates: Inflation in Bhutan has been relatively stable, influenced by global commodity prices. Interest rates are set to encourage savings and investment, balancing economic growth with fiscal stability.

• Supply Chain Dynamics: Bhutan's supply chains are adapting to global disruptions, with a focus on improving logistics and reducing dependency on single sources of imports to enhance supply chain resilience.

• Industry Performance: The construction, tourism, and information technology sectors are showing robust growth, while the agriculture sector, a mainstay of the economy, is undergoing modernization to increase productivity.

Overall Outlook

Bhutan's economy, while facing challenges such as a trade deficit and inflation pressures, is poised for growth through strategic investments in key industries and efforts to diversify its export base. The government's focus on sustainable development and economic diversification sets a positive trajectory for future prosperity.