SANDEE Researchers

Bhutan

As of 2014, the Kingdom of Bhutan had a population of 742,000 people. Most of its citizens live in the central highlands, while others are spread throughout its 38,000 square kilometers. The capital Thimpu is located 425 kilometers east of Kathmandu, Nepal and 280 kilometers southwest of Lhasa, Tibet. Bhutan is situated in the eastern Himalayas and bordered by China and India. The terrain is mostly mountainous, with some sub-tropical foothills in the south. Forests cover about 70% of the land area. The GDP of Bhutan was $1.8 billion in 2014 and the GNI per capita was $2,420. GDP has been rising consistently driven by increases in the hydropower sector. Economic growth should continue thanks to development in hydropower, manufacturing, and domestic services. Social indicators also continue to improve in Bhutan. However, as of 2008, only 53% of the rural population lived within one hour walking distance of a road head. Bhutan faces environmental and climate change challenges with potential melt of glacial lakes, wildlife conservation issues, soil erosion, and deforestation as the country continues development.