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The Kingdom of Bhutan is a landlocked country deep in the eastern Himalaya Mountains, bordering on India to the south and China to the north. Its rugged, mountainous terrain varies from altitudes of 100 m to 7,500 m. Bhutan has a total land area of about 47,000 km2.  Forests cover almost 75 per cent of the land.

The southern plains have a tropical climate, and central valleys have cool winters and hot summers. At higher altitudes winters are severe and summers are cool. Violent storms sweep down from the mountains. Rain falls mainly in the monsoon season from May to September. Land use is related to altitude and climate.

The population is about 636,000 and it is growing at an annual rate of 3.4 per cent. Administratively Bhutan is divided into 20 dzonkhags, or districts, which include 201 geogs, or village blocks. The capital is Thimphu.

Agriculture

Although agricultural land represents only 12 per cent of the total land area, the predominantly rural population depends on agriculture for their livelihood. Most rural households farm at a subsistence level and raise some livestock.

About 90 per cent of the country’s labour force works in the agricultural sector, which is officially known as the renewable natural resources sector. In  2005 agriculture accounted for about 25 per cent of gross domestic product (GDP) (World Bank).

Economy

The economy has developed rapidly since the country began to open up to external influences, and a stable macroeconomic environment has favoured growth. The average annual growth rate of GDP is about 6 per cent. Gross national income (GNI) per capita was an estimated US$1,250 in 2005, up from US$720 in 2000.

Agriculture was formerly the principal economic sector, but the services and industrial sectors now contribute the largest shares of GDP. The country’s main exports are electricity, timber, cement, agricultural products and handicrafts. Among the most economically active sectors are construction, manufacturing and transportation. Although subject to restrictions, tourism has considerable potential.

Source: IFAD