Economy grew by 4.7%, but still weak: PM

Bhutan’s economy grew by 4.7 percent last year. But, the Prime Minister said economy is still weak and a lot needs to be done to realise the goal of economic self-reliance. Presenting the state of the nation report, Lyonchhen said the government will focus on five main sectors- hydropower development, agriculture, tourism, small and medium enterprises and mining to build a strong economy.

Lyonchhen cited high public debt, trade imbalance and an external debt of 102 percent of the Gross Domestic Product. Others include, trade deficit, current account deficit, inflation rate and unemployment.

Lyonchhen said it is a concern as well as an opportunity for Bhutan to realise the goal of economic self-reliance.

The government will also encourage interested private sector to develop hydropower projects. In the agriculture sector, the government will focus on ways to strengthen production and improve access to market. Last year alone, Bhutan imported food items worth of close to Nu. 5 billion. Meanwhile in the tourism sector, Lyonchhen said Bhutan can still target to bring in more tourists without undermining the policy of high value and low impact.

Lyonchhen also said next year Bhutan will mark as ‘Visit Bhutan Year’ coinciding with the 60^th Birth Anniversary of His Majesty the Fourth Druk Gyalpo.

The government expects to double number of small and medium enterprises as well. As of now there are 13,000 small and medium enterprises in the country. The government, therefore, targets to double small enterprises in the 11^th Five Year Plan.

The fifth priority area of the government is to start a State Mining Corporation to increase the economic opportunities. Today, the mining sector barely contributes two percent of the economy.

To correct the economy, policies such as foreign direct investment and economic development will be reviewed. Other measures include, bringing Bhutan in the top 100 countries to ease of doing businesses, better business council to support the private sector and improving infrastructure.

Enhancing internet connectivity and forming a separate task force to curb inflation and make loans easy access for business are some of the strategies developed by the government.