Saturday, June 7, 2025
  • Contact Us
  • About BBS
  • Privacy & Policy
ENG
DZO
BBSCL Logo
  • Home
  • Business
  • Politics
  • Sports
  • Education
  • More
    • Announcement
    • Audience Survey Report
    • Programme
    • Radio Dzo-Channel Schedule
    • Radio Mix-Channel Schedule
Radio Live
No Result
View All Result
BBSCL logo
  • Home
  • Business
  • Politics
  • Sports
  • Education
  • More
    • Announcement
    • Audience Survey Report
    • Programme
    • Radio Dzo-Channel Schedule
    • Radio Mix-Channel Schedule
No Result
View All Result
BBSCL logo
Radio LIVE

Bhutan’s economic growth promising but financial gaps persist- ADB

April 18, 2025
in Business, Economy, Other Stories
Reading Time: 2 mins read
0
0
SHARES
413
VIEWS
Share on FacebookShare on Twitter

The Asian Development Bank projected that the country’s economy will grow at 8.5 per cent this year. However, in its outlook report, the ADB says the country needs to strengthen its financial sector to achieve this growth. According to the report, currently, the country’s financial system lacks depth and inclusivity. Limited access to credit, especially for small businesses and rural communities, is holding back broader participation in the economy.

The ADB report suggests that, right now, a lot of potential is being left on the table, especially for small businesses and rural communities. The report highlights risks like concentrated lending and uneven digital banking, which could threaten long-term stability.

The ADB says most bank lending is still concentrated in just a few sectors like tourism and housing, areas vulnerable to demand shifts.

Meanwhile, credit to other parts of the economy has been slow, with many entrepreneurs highlighting banks’ hesitance to support new or unfamiliar ventures.

Non-performing loans (NPL) have fallen slightly from 11.1 per cent in mid-2022 to 9.5 per cent in mid-2023. However, the report notes that many of these loans remain under deferment, a result of the economic hit Bhutan took during the COVID-19 pandemic. So, the report suggests that the drop in non-performing loans may not accurately reflect a genuine economic recovery.

The report talks about how while Bhutan is making progress in digital banking, it’s not reaching everyone equally.  According to the living standards survey report, in urban areas, over 75 per cent of people use mobile banking. However, in rural areas, it’s less than half that. The gap in ATM access is just as wide.

Moreover, ADB’s report highlights Bhutan’s dependence on hydropower exports and public sector spending as further vulnerabilities.

A stronger financial system would give the government more tools to respond to economic shocks, such as inflation or natural disasters. This comes as Bhutan seeks to diversify its economy beyond hydropower and agriculture.

The growth is real, but so are the gaps. To support inclusive and sustained growth, the report recommends broadening access to credit, building a robust financial infrastructure, embracing advanced digital financing tools and diversifying the financial ecosystem.

Karma Samten Wangda

Edited by Phub Gyem

Previous Post

Transforming pineapple leaves into textile fibre – Durungri village, Pema Gatshel

Next Post

Commuters urge contractor to expedite Dunglagang-Kilkhorthang road restoration, Tsirang

Next Post
Commuters urge contractor to expedite Dunglagang-Kilkhorthang road restoration, Tsirang

Commuters urge contractor to expedite Dunglagang-Kilkhorthang road restoration, Tsirang

Employers and employees unaware of workplace accidents’ compensation and legal consequences

Employers and employees unaware of workplace accidents' compensation and legal consequences

RCSC extends GSP and ESP contract periods to up to five years

RCSC extends GSP and ESP contract periods to up to five years

RECOMMENDED NEWS

Lyonchhen and National Security Advisor discuss GoI financial assistance

12 years ago
1

No water, farmers choose cardamom plantation

13 years ago
2

11 years ago
1
Fire destroys a traditional house, Pema Gatshel

Fire destroys a traditional house, Pema Gatshel

5 years ago
2

BROWSE BY CATEGORIES

  • Accidents (14)
  • Agriculture (426)
  • Announcement (174)
  • Audience Survey Report (1)
  • Business (744)
  • Crime/Legal (367)
  • Culture (47)
  • Development (51)
  • Disaster (57)
  • Economy (277)
  • Education (412)
  • Entertainment (13)
  • Environment (60)
  • Feature (65)
  • Featured (6)
  • Festival (78)
  • GMC (14)
  • Headlines (6)
  • Health (622)
  • Legal (52)
  • Literature (9)
  • Livestock (75)
  • Media (25)
  • Other Stories (5,574)
  • Politics (419)
  • RCSC (1)
  • Recent stories (5)
  • Religion (45)
  • Sci/Tech (709)
  • Social (515)
  • Sports (449)
  • Technology (190)
  • Tourism (19)
  • Uncategorized (13,866)
  • Video (136)
  • Video Story (249)
  • Wildlife (42)

BROWSE BY TOPICS

Tender Announcement Vacancy Announcement

POPULAR NEWS

  • BPC’s investigation rules out transformer short circuit as Damchhu forest fire cause

    Viral video of Bhutanese man assaulted by locals and police in Jaigaon sparks safety concerns

    0 shares
    Share 0 Tweet 0
  • Gelephu Mindfulness City opens recruitment drive for Bhutanese professionals

    0 shares
    Share 0 Tweet 0
  • Newspaper accuses DPT candidate of political ploy

    0 shares
    Share 0 Tweet 0
  • A centenarian’s recipe to longevity

    0 shares
    Share 0 Tweet 0
  • 40 companies risk closure over failure to submit financial reports

    0 shares
    Share 0 Tweet 0
BBSCL

Bhutan Broadcasting Service (BBS) is Bhutan’s primary national broadcaster, delivering diverse news and entertainment in multiple languages, fostering cultural understanding and public knowledge.

Follow us on social media:

Recent News

  • RMA to roll out seven new measures for loan repayment support
  • National Housing Strategy to be ready by September
  • Bhutan begins NFT sales, to preserve heritage
  • City bus viability raised in parliament, MoIT minister cites past privatisation failures
  • Paro MP questions airport expansion impact on affected landowners

News Category

  • Accidents
  • Agriculture
  • Announcement
  • Audience Survey Report
  • Business
  • Crime/Legal
  • Culture
  • Development
  • Disaster
  • Economy
  • Education
  • Entertainment
  • Environment
  • Feature
  • Featured
  • Festival
  • GMC
  • Headlines
  • Health
  • Legal
  • Literature
  • Livestock
  • Media
  • Other Stories
  • Politics
  • RCSC
  • Recent stories
  • Religion
  • Sci/Tech
  • Social
  • Sports
  • Technology
  • Tourism
  • Uncategorized
  • Video
  • Video Story
  • Wildlife
  • Contact Us
  • About BBS
  • Privacy & Policy

© 2024 BBSCL. All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Home
  • Business
  • Politics
  • Sports
  • Education
  • More
    • Announcement
    • Audience Survey Report
    • Programme
    • Radio Dzo-Channel Schedule
    • Radio Mix-Channel Schedule

© 2024 BBSCL. All rights reserved.