Bhutan: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Bhutan

June 30, 2016

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Bhutan: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Bhutan, (USA: International Monetary Fund, 2016) accessed December 22, 2024

Summary

This paper discusses the recent economic developments, outlook, and risks for Bhutan. Following a slowdown in activity in the wake of the rupee shortage, economic growth has picked up more recently. From an average of about 8 percent during the Ninth and Tenth Five-Year Plans spanning fiscal years (FYs) 2003/04–2012/13, real GDP growth fell below 4 percent in FY2012/13 and FY2013/14. Bhutan’s medium-term outlook remains favorable. Commissioning of new hydropower generation projects will boost output, exports, and fiscal revenues. However, domestic risks stem from the need to manage high debt and potentially volatile hydropower-related inflows, which may fuel rapid credit growth and lead to renewed external pressure.

Subject: Credit, External debt, Imports, International trade, Money, Public and publicly-guaranteed external debt, Public debt

Keywords: Authorities endeavor, Authority, CR, Credit, Current account, Deficit, Global, Growth slowdown, Imports, Indian rupee, ISCR, Middle East, Monetary policy transmission mechanism, Public and publicly-guaranteed external debt, Real GDP, South Asia, Staff's advice, Staff's suggestion

Publication Details

Pages:

63
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2016/206
Stock No:

1BTNEA2016001
ISBN:

9781475567342
ISSN:

1934-7685

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