Bhutan Development Update, April 2014
After a policy-engineered slowdown in 2012, which saw GDP growth decline to 4.8 percent, the lowest since 2008, Bhutan's economy is expected to rebound to 6.5 percent this year, supported by hydropower construction and higher electricity and f...
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| Format: | Economic Updates and Modeling |
| Language: | English en_US |
| Published: |
Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2014/04/19455214/bhutan-development-update http://hdl.handle.net/10986/18656 |
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okr-10986-18656 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCESS TO SERVICES ACCOUNTING ADVERSE IMPACTS AGRICULTURE AGRICULTURE ORGANIZATION ALTERNATIVE EMPLOYMENT ALTERNATIVE INVESTMENT ANNUAL GROWTH ASSET CLASSIFICATION ASSETS BALANCE OF PAYMENT BALANCE OF PAYMENTS BANK CREDIT BANK FINANCING BANKING SECTOR BANKING SYSTEM BENCHMARK BILL BORROWINGS BROAD MONEY BUSINESS OPPORTUNITY CAPITAL ADEQUACY CAPITAL FUND CASH RESERVE CASH RESERVE RATIO CENTRAL BANK COLLATERAL COMMERCIAL BANKS CONSUMER INFLATION CONSUMER PRICE INDEX CONSUMER PRICE INFLATION COOPERATIVES CORPORATE DEPOSITS CREDIT BUREAU CREDIT GROWTH CREDIT OUTSTANDING CROP LOSSES CURRENCY CURRENT ACCOUNT CURRENT ACCOUNT DEFICIT CURRENT ACCOUNT SURPLUS CURRENT EXPENDITURES CURRENT PRICES DEBT RATIOS DEBT REPAYMENT DEBT SERVICE DEBT SERVICE PAYMENTS DEBT SERVICING DEBT STOCK DEPOSIT DEPOSITS DEVELOPMENT BANK DEVELOPMENT POLICY DEVELOPMENT STRATEGY DISBURSEMENT DISBURSEMENTS DIVIDENDS DOMESTIC CAPITAL DOMESTIC CAPITAL MARKET DOMESTIC CONSUMPTION DOMESTIC DEBT DOMESTIC DEMAND DONOR RESOURCES DONOR SUPPORT EARNINGS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC DEVELOPMENTS ECONOMIC GROWTH ECONOMIC LIBERALIZATION EMPLOYMENT OPPORTUNITIES ENERGY DEMAND ENTREPRENEURSHIP ENTREPRENEURSHIP DEVELOPMENT EXCESS LIQUIDITY EXCHANGE RATE EXPENDITURE EXPENDITURES EXPORT REVENUES EXPORTS EXTERNAL BORROWING EXTERNAL DEBT EXTERNAL FINANCING EXTREME POVERTY FAMILIES FAMILY RESPONSIBILITIES FARMERS FINANCIAL DEVELOPMENT FINANCIAL INSTITUTIONS FINANCIAL RESOURCES FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL STABILITY FINANCIAL SYSTEM FISCAL BALANCE FISCAL POLICIES FLEXIBLE INTEREST RATES FLOATING RATE FOOD PRICE FOOD PRICES FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES FOREIGN FINANCING FULL EMPLOYMENT GDP GENDER GOVERNMENT BUDGET GROSS DOMESTIC PRODUCT HOLDING HOUSEHOLDS HOUSING HOUSING LOANS HUMAN RESOURCE HUMAN RESOURCES IMBALANCES IMPORT IMPORTS INCOME TAX INEQUALITIES INFLATION INFLATIONARY PRESSURES INFRASTRUCTURE DEVELOPMENT INHERITANCE INTEREST RATE INTEREST RATES INTERNATIONAL RESERVES INTERNATIONAL TRANSACTIONS INVESTMENT OPPORTUNITIES INVESTMENT PROJECTS ISSUANCE ISSUANCE OF TREASURY BILLS JOB OPPORTUNITIES LABOR COSTS LABOR FORCE LABOR FORCE SURVEY LAND VALUES LAWS LIQUIDITY LIQUIDITY CONDITIONS LIVING STANDARDS LOAN LOAN RATES LOAN-TO-DEPOSIT RATIO LOCAL CURRENCY LOCAL ECONOMY LONG-TERM LOANS M2 MANDATES MARKET CONDITIONS MARKET INFRASTRUCTURE MARKET PRICES MIGRATION MONETARY AUTHORITY MONETARY CONDITIONS MONETARY POLICY MONETARY TRANSMISSION MULTIPLIER EFFECTS NATIONAL BANK NON-PERFORMING LOANS NONBANK FINANCIAL INSTITUTIONS NONBANKS NUTRITION ORGANIZATIONAL STRUCTURE PERSONAL LOANS PORTFOLIO POVERTY REDUCTION PRESENT VALUE PRICE FLUCTUATIONS PRIVATE SECTOR CREDIT PROFITABILITY PROVISIONING RULES PRUDENTIAL REGULATIONS PUBLIC DEBT PUBLIC FINANCE PUBLIC GOOD PUBLIC SECTOR DEBT PUBLIC SPENDING PURCHASING POWER PURCHASING POWER PARITY RAPID GROWTH REAL ESTATE REAL ESTATE LOANS REAL GDP REAL INTEREST REAL INTEREST RATES RECEIPTS REPAYMENT REPAYMENT PERIOD REPAYMENTS RESERVES RETIREMENT REVOLVING FUND SAFETY NETS SAVINGS SETTLEMENT SHORT-TERM LIQUIDITY SHORTFALLS SLOWDOWN SOCIAL SAFETY NETS SOURCE OF INCOME STRONG DEMAND SUBORDINATED DEBT SUBORDINATED DEBTS SUBSIDY POLICY SUPPLY-SIDE TAXATION TIME HORIZONS TOTAL DEPOSITS TOTAL EXPORTS TOTAL EXTERNAL DEBT TOTAL INVESTMENT TRADE AGREEMENTS TRADE BALANCE TRANCHE TRANSACTION TRANSACTION COSTS TRANSMISSION MECHANISM TRANSPARENCY TRANSPORT TREASURY UNEMPLOYMENT UNEMPLOYMENT RATE URBAN AREAS URBANIZATION VILLAGES WAGES WATER SUPPLY WEIGHTS |
| spellingShingle |
ACCESS TO SERVICES ACCOUNTING ADVERSE IMPACTS AGRICULTURE AGRICULTURE ORGANIZATION ALTERNATIVE EMPLOYMENT ALTERNATIVE INVESTMENT ANNUAL GROWTH ASSET CLASSIFICATION ASSETS BALANCE OF PAYMENT BALANCE OF PAYMENTS BANK CREDIT BANK FINANCING BANKING SECTOR BANKING SYSTEM BENCHMARK BILL BORROWINGS BROAD MONEY BUSINESS OPPORTUNITY CAPITAL ADEQUACY CAPITAL FUND CASH RESERVE CASH RESERVE RATIO CENTRAL BANK COLLATERAL COMMERCIAL BANKS CONSUMER INFLATION CONSUMER PRICE INDEX CONSUMER PRICE INFLATION COOPERATIVES CORPORATE DEPOSITS CREDIT BUREAU CREDIT GROWTH CREDIT OUTSTANDING CROP LOSSES CURRENCY CURRENT ACCOUNT CURRENT ACCOUNT DEFICIT CURRENT ACCOUNT SURPLUS CURRENT EXPENDITURES CURRENT PRICES DEBT RATIOS DEBT REPAYMENT DEBT SERVICE DEBT SERVICE PAYMENTS DEBT SERVICING DEBT STOCK DEPOSIT DEPOSITS DEVELOPMENT BANK DEVELOPMENT POLICY DEVELOPMENT STRATEGY DISBURSEMENT DISBURSEMENTS DIVIDENDS DOMESTIC CAPITAL DOMESTIC CAPITAL MARKET DOMESTIC CONSUMPTION DOMESTIC DEBT DOMESTIC DEMAND DONOR RESOURCES DONOR SUPPORT EARNINGS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC DEVELOPMENTS ECONOMIC GROWTH ECONOMIC LIBERALIZATION EMPLOYMENT OPPORTUNITIES ENERGY DEMAND ENTREPRENEURSHIP ENTREPRENEURSHIP DEVELOPMENT EXCESS LIQUIDITY EXCHANGE RATE EXPENDITURE EXPENDITURES EXPORT REVENUES EXPORTS EXTERNAL BORROWING EXTERNAL DEBT EXTERNAL FINANCING EXTREME POVERTY FAMILIES FAMILY RESPONSIBILITIES FARMERS FINANCIAL DEVELOPMENT FINANCIAL INSTITUTIONS FINANCIAL RESOURCES FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL STABILITY FINANCIAL SYSTEM FISCAL BALANCE FISCAL POLICIES FLEXIBLE INTEREST RATES FLOATING RATE FOOD PRICE FOOD PRICES FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES FOREIGN FINANCING FULL EMPLOYMENT GDP GENDER GOVERNMENT BUDGET GROSS DOMESTIC PRODUCT HOLDING HOUSEHOLDS HOUSING HOUSING LOANS HUMAN RESOURCE HUMAN RESOURCES IMBALANCES IMPORT IMPORTS INCOME TAX INEQUALITIES INFLATION INFLATIONARY PRESSURES INFRASTRUCTURE DEVELOPMENT INHERITANCE INTEREST RATE INTEREST RATES INTERNATIONAL RESERVES INTERNATIONAL TRANSACTIONS INVESTMENT OPPORTUNITIES INVESTMENT PROJECTS ISSUANCE ISSUANCE OF TREASURY BILLS JOB OPPORTUNITIES LABOR COSTS LABOR FORCE LABOR FORCE SURVEY LAND VALUES LAWS LIQUIDITY LIQUIDITY CONDITIONS LIVING STANDARDS LOAN LOAN RATES LOAN-TO-DEPOSIT RATIO LOCAL CURRENCY LOCAL ECONOMY LONG-TERM LOANS M2 MANDATES MARKET CONDITIONS MARKET INFRASTRUCTURE MARKET PRICES MIGRATION MONETARY AUTHORITY MONETARY CONDITIONS MONETARY POLICY MONETARY TRANSMISSION MULTIPLIER EFFECTS NATIONAL BANK NON-PERFORMING LOANS NONBANK FINANCIAL INSTITUTIONS NONBANKS NUTRITION ORGANIZATIONAL STRUCTURE PERSONAL LOANS PORTFOLIO POVERTY REDUCTION PRESENT VALUE PRICE FLUCTUATIONS PRIVATE SECTOR CREDIT PROFITABILITY PROVISIONING RULES PRUDENTIAL REGULATIONS PUBLIC DEBT PUBLIC FINANCE PUBLIC GOOD PUBLIC SECTOR DEBT PUBLIC SPENDING PURCHASING POWER PURCHASING POWER PARITY RAPID GROWTH REAL ESTATE REAL ESTATE LOANS REAL GDP REAL INTEREST REAL INTEREST RATES RECEIPTS REPAYMENT REPAYMENT PERIOD REPAYMENTS RESERVES RETIREMENT REVOLVING FUND SAFETY NETS SAVINGS SETTLEMENT SHORT-TERM LIQUIDITY SHORTFALLS SLOWDOWN SOCIAL SAFETY NETS SOURCE OF INCOME STRONG DEMAND SUBORDINATED DEBT SUBORDINATED DEBTS SUBSIDY POLICY SUPPLY-SIDE TAXATION TIME HORIZONS TOTAL DEPOSITS TOTAL EXPORTS TOTAL EXTERNAL DEBT TOTAL INVESTMENT TRADE AGREEMENTS TRADE BALANCE TRANCHE TRANSACTION TRANSACTION COSTS TRANSMISSION MECHANISM TRANSPARENCY TRANSPORT TREASURY UNEMPLOYMENT UNEMPLOYMENT RATE URBAN AREAS URBANIZATION VILLAGES WAGES WATER SUPPLY WEIGHTS World Bank Bhutan Development Update, April 2014 |
| geographic_facet |
South Asia Bhutan |
| description |
After a policy-engineered slowdown in
2012, which saw GDP growth decline to 4.8 percent, the
lowest since 2008, Bhutan's economy is expected to
rebound to 6.5 percent this year, supported by hydropower
construction and higher electricity and food production,
following favorable rains. The tight fiscal stance
introduced in 2012 has been maintained to bring spending in
line with lower non-hydro revenues and a slowdown in foreign
grant disbursements, but the revenue situation is expected
to improve with the commissioning of cement and electricity
projects. Bhutan's external debt, at 85 percent of GDP,
remains high, but is likely to fall sharply as assured
hydropower revenues begin to flow from projects for which
the external loans were taken. However, its narrow exports
base and the large rupee-reserves mismatch make the country
vulnerable to shortfalls in external earnings and pose a
moderate risk. Bhutan's success in reducing absolute
poverty is noteworthy, with the poverty rate falling from 23
percent in 2007 to 12-13 percent in 2012, improving the lot
of the poorest segments of the population rather than merely
that of those clustered around the poverty line. A rapid
growth of commercial agriculture, expanding rural
infrastructure, and beneficial effects from the construction
of massive hydropower projects has established a sound
platform for further poverty reduction. However, continued
out-migration to urban areas and vulnerability of
infra-marginal groups, the relative absence of formal social
protection institutions, youth unemployment, and the
persistence of malnutrition, anemia and stunting point to
the need for continued effort at tackling non-income
poverty. The macroeconomic projections for 2014 set GDP
growth at 7.3 percent, stemming from new projects, increased
tourism receipts, easier credit conditions and the effects
of the Economic Stimulus Plan. |
| format |
Economic & Sector Work :: Economic Updates and Modeling |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Bhutan Development Update, April 2014 |
| title_short |
Bhutan Development Update, April 2014 |
| title_full |
Bhutan Development Update, April 2014 |
| title_fullStr |
Bhutan Development Update, April 2014 |
| title_full_unstemmed |
Bhutan Development Update, April 2014 |
| title_sort |
bhutan development update, april 2014 |
| publisher |
Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2014/04/19455214/bhutan-development-update http://hdl.handle.net/10986/18656 |
| _version_ |
1764442055669448704 |
| spelling |
okr-10986-186562021-04-23T14:03:47Z Bhutan Development Update, April 2014 World Bank ACCESS TO SERVICES ACCOUNTING ADVERSE IMPACTS AGRICULTURE AGRICULTURE ORGANIZATION ALTERNATIVE EMPLOYMENT ALTERNATIVE INVESTMENT ANNUAL GROWTH ASSET CLASSIFICATION ASSETS BALANCE OF PAYMENT BALANCE OF PAYMENTS BANK CREDIT BANK FINANCING BANKING SECTOR BANKING SYSTEM BENCHMARK BILL BORROWINGS BROAD MONEY BUSINESS OPPORTUNITY CAPITAL ADEQUACY CAPITAL FUND CASH RESERVE CASH RESERVE RATIO CENTRAL BANK COLLATERAL COMMERCIAL BANKS CONSUMER INFLATION CONSUMER PRICE INDEX CONSUMER PRICE INFLATION COOPERATIVES CORPORATE DEPOSITS CREDIT BUREAU CREDIT GROWTH CREDIT OUTSTANDING CROP LOSSES CURRENCY CURRENT ACCOUNT CURRENT ACCOUNT DEFICIT CURRENT ACCOUNT SURPLUS CURRENT EXPENDITURES CURRENT PRICES DEBT RATIOS DEBT REPAYMENT DEBT SERVICE DEBT SERVICE PAYMENTS DEBT SERVICING DEBT STOCK DEPOSIT DEPOSITS DEVELOPMENT BANK DEVELOPMENT POLICY DEVELOPMENT STRATEGY DISBURSEMENT DISBURSEMENTS DIVIDENDS DOMESTIC CAPITAL DOMESTIC CAPITAL MARKET DOMESTIC CONSUMPTION DOMESTIC DEBT DOMESTIC DEMAND DONOR RESOURCES DONOR SUPPORT EARNINGS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC DEVELOPMENTS ECONOMIC GROWTH ECONOMIC LIBERALIZATION EMPLOYMENT OPPORTUNITIES ENERGY DEMAND ENTREPRENEURSHIP ENTREPRENEURSHIP DEVELOPMENT EXCESS LIQUIDITY EXCHANGE RATE EXPENDITURE EXPENDITURES EXPORT REVENUES EXPORTS EXTERNAL BORROWING EXTERNAL DEBT EXTERNAL FINANCING EXTREME POVERTY FAMILIES FAMILY RESPONSIBILITIES FARMERS FINANCIAL DEVELOPMENT FINANCIAL INSTITUTIONS FINANCIAL RESOURCES FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL STABILITY FINANCIAL SYSTEM FISCAL BALANCE FISCAL POLICIES FLEXIBLE INTEREST RATES FLOATING RATE FOOD PRICE FOOD PRICES FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES FOREIGN FINANCING FULL EMPLOYMENT GDP GENDER GOVERNMENT BUDGET GROSS DOMESTIC PRODUCT HOLDING HOUSEHOLDS HOUSING HOUSING LOANS HUMAN RESOURCE HUMAN RESOURCES IMBALANCES IMPORT IMPORTS INCOME TAX INEQUALITIES INFLATION INFLATIONARY PRESSURES INFRASTRUCTURE DEVELOPMENT INHERITANCE INTEREST RATE INTEREST RATES INTERNATIONAL RESERVES INTERNATIONAL TRANSACTIONS INVESTMENT OPPORTUNITIES INVESTMENT PROJECTS ISSUANCE ISSUANCE OF TREASURY BILLS JOB OPPORTUNITIES LABOR COSTS LABOR FORCE LABOR FORCE SURVEY LAND VALUES LAWS LIQUIDITY LIQUIDITY CONDITIONS LIVING STANDARDS LOAN LOAN RATES LOAN-TO-DEPOSIT RATIO LOCAL CURRENCY LOCAL ECONOMY LONG-TERM LOANS M2 MANDATES MARKET CONDITIONS MARKET INFRASTRUCTURE MARKET PRICES MIGRATION MONETARY AUTHORITY MONETARY CONDITIONS MONETARY POLICY MONETARY TRANSMISSION MULTIPLIER EFFECTS NATIONAL BANK NON-PERFORMING LOANS NONBANK FINANCIAL INSTITUTIONS NONBANKS NUTRITION ORGANIZATIONAL STRUCTURE PERSONAL LOANS PORTFOLIO POVERTY REDUCTION PRESENT VALUE PRICE FLUCTUATIONS PRIVATE SECTOR CREDIT PROFITABILITY PROVISIONING RULES PRUDENTIAL REGULATIONS PUBLIC DEBT PUBLIC FINANCE PUBLIC GOOD PUBLIC SECTOR DEBT PUBLIC SPENDING PURCHASING POWER PURCHASING POWER PARITY RAPID GROWTH REAL ESTATE REAL ESTATE LOANS REAL GDP REAL INTEREST REAL INTEREST RATES RECEIPTS REPAYMENT REPAYMENT PERIOD REPAYMENTS RESERVES RETIREMENT REVOLVING FUND SAFETY NETS SAVINGS SETTLEMENT SHORT-TERM LIQUIDITY SHORTFALLS SLOWDOWN SOCIAL SAFETY NETS SOURCE OF INCOME STRONG DEMAND SUBORDINATED DEBT SUBORDINATED DEBTS SUBSIDY POLICY SUPPLY-SIDE TAXATION TIME HORIZONS TOTAL DEPOSITS TOTAL EXPORTS TOTAL EXTERNAL DEBT TOTAL INVESTMENT TRADE AGREEMENTS TRADE BALANCE TRANCHE TRANSACTION TRANSACTION COSTS TRANSMISSION MECHANISM TRANSPARENCY TRANSPORT TREASURY UNEMPLOYMENT UNEMPLOYMENT RATE URBAN AREAS URBANIZATION VILLAGES WAGES WATER SUPPLY WEIGHTS After a policy-engineered slowdown in 2012, which saw GDP growth decline to 4.8 percent, the lowest since 2008, Bhutan's economy is expected to rebound to 6.5 percent this year, supported by hydropower construction and higher electricity and food production, following favorable rains. The tight fiscal stance introduced in 2012 has been maintained to bring spending in line with lower non-hydro revenues and a slowdown in foreign grant disbursements, but the revenue situation is expected to improve with the commissioning of cement and electricity projects. Bhutan's external debt, at 85 percent of GDP, remains high, but is likely to fall sharply as assured hydropower revenues begin to flow from projects for which the external loans were taken. However, its narrow exports base and the large rupee-reserves mismatch make the country vulnerable to shortfalls in external earnings and pose a moderate risk. Bhutan's success in reducing absolute poverty is noteworthy, with the poverty rate falling from 23 percent in 2007 to 12-13 percent in 2012, improving the lot of the poorest segments of the population rather than merely that of those clustered around the poverty line. A rapid growth of commercial agriculture, expanding rural infrastructure, and beneficial effects from the construction of massive hydropower projects has established a sound platform for further poverty reduction. However, continued out-migration to urban areas and vulnerability of infra-marginal groups, the relative absence of formal social protection institutions, youth unemployment, and the persistence of malnutrition, anemia and stunting point to the need for continued effort at tackling non-income poverty. The macroeconomic projections for 2014 set GDP growth at 7.3 percent, stemming from new projects, increased tourism receipts, easier credit conditions and the effects of the Economic Stimulus Plan. 2014-06-12T21:03:01Z 2014-06-12T21:03:01Z 2014-04 http://documents.worldbank.org/curated/en/2014/04/19455214/bhutan-development-update http://hdl.handle.net/10986/18656 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ Washington, DC Economic & Sector Work :: Economic Updates and Modeling South Asia Bhutan |