According to the World Bank’s latest Global Economic Prospects report, Bhutan’s economy is projected to grow by 4.1 per cent in the current fiscal year.
However, this forecast is 0.6 per cent lower than the World Bank’s projection from June, last year.
The report cites the opening of borders in September as a factor that will support growth in the industry and service sectors.
Bhutan’s Gross Domestic Product (GDP) growth rate slowed to -2.3 per cent during the first year of the pandemic in 2020 and further slowed to -3.3 per cent the following year.
The report also forecasts slower growth for Bhutan in the 2023-2024 fiscal year, at 3.7 per cent, citing lower public investment and delays in several hydropower projects as reasons for this projection.
Compared to other South Asian nations, Bhutan’s growth projection is relatively low.
Only Sri Lanka and Pakistan are expected to grow at -4.2 per cent and 2 per cent respectively, while Bhutan is expected to grow at 4.1 per cent.
The Maldives’ GDP is expected to grow at 8.2 per cent, followed by India at 6.9 per cent.
Bangladesh and Nepal’s GDP are projected to grow at 5.2 per cent and 5.1 per cent respectively.
Tshering Deki
Edited by Sherub Dorji
