The country’s gross domestic product, GDP, recorded a growth of about five per cent, reaching an economy size of about Nu 250bn last year. According to the National Accounts Statistics published by the statistics bureau, the economic expansion was primarily driven by the service sector.
The size of the economy increased by Nu 21.5bn in 2023 from Nu 227.8bn a year earlier.
Among the three main economic sectors, the tertiary or the services sector, which makes up the majority of the economy increased its share of the economy by about two per cent.
On the other hand, the secondary sector, which includes industries, manufacturing, construction, and electricity among others saw a marginal dip in its share of the economy in 2023.
The primary sector consisting of agricultural activities such as growing crops and rearing livestock saw modest growth last year.
According to the National Accounts Statistics, growth in hotels and restaurants, finance and insurance, wholesale and retail, and information and communication sectors contributed to the positive growth in the service sector.
Going by sheer number, the hotel and restaurant sector increased its contribution to the GDP by almost Nu 2bn between 2022 and 2023.
The finance and insurance sector added almost Nu 14bn to the GDP, up from about Nu 12bn in 2022.
Similarly, at almost 12 per cent contribution to the economy, the wholesale and retail trade sector’s value added to the economy last year is estimated at almost Nu 30bn.
Overall, the tertiary sector marked a growth of 8.61 per cent in 2023. The sector also saw a growth of 6.62 per cent in the previous year.
According to the report, the consecutive growth is significant, considering the negative growth experienced in 2020 due to the COVID-19 pandemic.
The service sector’s 55.49 per cent share of the GDP last year, is equivalent to Nu 138bn in gross value.
Meanwhile, the GDP per capita income in 2023 increased to almost USD 4,000 from a little over USD 3,800 in 2022. The GDP per capita of a country is calculated by dividing the total GDP of the country by its population.
Samten Dolkar
Edited by Sherub Dorji
