Bhutan: Staff Report for the 2014 Article IV Consultation

IMF Staff Country Reports, July 1, 2014

Source details

Canonical URL

Bhutan: Staff Report for the 2014 Article IV Consultation

Other formats

• Markdown version
• Structured JSON version
• Bundle manifest

Bibliographic details

• Published: July 1, 2014
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781498357708.002

Summary findings

• GDP growth slowed from about 10 percent in FY2011 (July 1–June 30) to 5 percent in FY2013.
• Slower growth reflects policy efforts to contain overheating pressures through restrictions on credit for construction and vehicle.
• Inflation has remained elevated, tracking closely that of India (Bhutan’s main trading partner).
• Social development indicators have improved steadily; Bhutan is on track or has achieved most of its Millennium Development Goals.
• Growth is projected to recover to 6½ percent in FY2014, driven mainly by a pick-up in hydropower-related construction activities and domestic services.

Macro outlook and drivers

• Growth:
  • FY2011: about 10 percent
  • FY2013: 5 percent
  • FY2014 (projection): 6½ percent
• Main near-term driver of recovery: hydropower-related construction activities and domestic services.
• External influence: inflation dynamics closely follow India.

Financial sector and policy stance

• Policy actions taken: restrictions on credit for construction and vehicle to contain overheating.
• Financial concerns emphasized: credit growth management, liquidity, and public debt instruments (Treasury bills and bonds).

Social and development outcomes

• Social development indicators: improved steadily.
• Millennium Development Goals: Bhutan is on track or has achieved most targets.

Subject and keyword highlights

• Subjects: Asset and liability management; Banking; Credit; External debt; Financial institutions; Financial services; Inflation; Liquidity; Public debt; Treasury bills and bonds.
• Keywords: Asia and Pacific; CR; credit growth; credit growth rebound; Global; Indian rupee; inflation in Bhutan; ISCR; Liquidity; private sector credit; South Asia; staff projection; Treasury bills and bonds.

Source: Bhutan: Staff Report for the 2014 Article IV Consultation (July 1, 2014), IMF.

Content in this bundle

• Bhutan: IMF staff report content unit _cr14178
  • Bhutan: IMF staff report content unit _cr14178 (Markdown version)
  • Bhutan: IMF staff report content unit _cr14178 (PDF)