Country risk report · Asia
Bhutan
Political RiskLow
Operational RiskMedium
Security RiskVery Low
Summary
Bhutan, a small, landlocked country nestled in the Eastern Himalayas, is known for its unique approach to development, prioritizing Gross National Happiness over GDP growth. It shares borders with China to the north and India to the south, west, and east. With a population of approximately 800,000 (2024 estimate), Bhutan remains a predominantly rural society. Thimphu, the capital, serves as the political and economic center. The economy of Bhutan relies heavily on hydropower, agriculture, and tourism, with hydropower exports to India forming a major source of revenue.
Despite a growing economy, Bhutan faces challenges due to its small domestic market, dependency on India, and limited infrastructure. The country has made strides in education and healthcare, and its environmental policies are globally recognized. Bhutan is a member of the South Asian Association for Regional Cooperation (SAARC) and has preferential trade agreements with India, reflecting its close economic and political ties with its neighbor.
- Capital
- Thimphu
- Population
- 800,000 (2024 estimate)
- Official Languages
- Dzongkha
- Currency
- Bhutanese Ngultrum (BTN), Indian Rupee (INR) also accepted
- Key Industries
- Hydropower, agriculture, tourism, handicrafts
- GDP
- $2.7 billion (2023 estimate)
- GDP Growth
- 4.5% (2023 estimate)
Table of contents
- Bhutan | Overview
- Political Risk Summary
- Political Stability
- Regulatory Risk
- Contract Enforcement
- Integrity and Corruption
- Sovereign Risk
- Operational Risk Summary
- Institutional Risk
- Infrastructure Risk
- Labour Risk
- Security Risk Summary
- Crime Risk
- Terrorism Risk
- War Risk
- Civil Unrest
- Kidnap Risk
Risk levels in the report
From the report’s summary page. The full report explains each level and lists the key concerns behind it.
- Very Low
- Low
- Medium
- High
- Very High
| Category | Risk level |
|---|---|
| Political Risk | Low |
| Political Stability | Low |
| Regulatory Risk | Medium |
| Contract Enforcement | Medium |
| Integrity and Corruption | Low |
| Sovereign Risk | Medium |
| Operational Risk | Medium |
| Institutional Risk | Medium |
| Infrastructure Risk | High |
| Labour Risk | Medium |
| Security Risk | Very Low |
| Crime | Very Low |
| Terrorism | Very Low |
| War Risk | Very Low |
| Civil Unrest | Low |
| Kidnap Risk | Very Low |
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