Within the South Asia region, where about a third of the world’s poor live, Bhutan has had astonishing success in reducing poverty and boosting shared prosperity. Following the development philosophy of Gross National Happiness, Bhutan has increased its GDP per capita to US$3,398 in 2018, exceeding South Asia’s average of US$1,905 in the same year.¹
GDP per capita (current US$)
Bhutan’s economic growth has been driven by its public sector through hydropower development, with hydropower contributing as much as 30% of the GDP.² In comparison, Bhutan’s private sector is weak given its mountainous terrain, small domestic market, sparse population, high transportation costs, skill shortages, and other factors.³
Bhutan has invested in infrastructure, education, and health to tackle youth employment, which stood at 12.3% in 2017.²
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