A Gross Domestic Product (GDP) growth rate of 2.05 percent is a clear indication of a troubled economy, said the Economic Affairs Minister, Norbu Wangchuk.
Lyonpo Norbu Wangchuk said the clear indications of the country’s troubled economy are the high current account deficit, unemployment rate combined with inflation rate and rupee shortage.
The current account deficit accounts to about 25 percent of the country’s Gross Domestic Product. It is about Nu.24 BN. Current account deficit means the country’s import of goods and services exceeding its exports.
The government not being able to generate adequate jobs is also an indication of a troubled economy. The current unemployment, especially youth unemployment, stands at about 9 percent.
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“Year 2012 had been a difficult year and that was during the previous government. We had a current account deficit and we were running into serious rupee shortage in our economy.”
He said certain policies were put in place and certain policies implemented then. “Today we are feeling the ramification of these policy decisions.”
The policies he was indicating were the suspension of loans for the private constructions and ban on import of vehicles and furniture.
Lyonpo Norbu Wangchuk also added, the sluggish growth is also because of the late implementation of the 11th Five Year Plan.
“Several initiatives were initiated to boost the economy, such as, Nu.5 BN Economic Stimulus Plan and Business Opportunity and Information Centre to develop small cottages industries.”
Despite the initiatives, Lyonpo said, he is not overtly optimistic that the GDP will soar even this year. He said there would be significant improvement in the growth rate of the country’s GDP starting next year.
