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Bhutan: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Bhutan
Author:
International Monetary Fund. Asia and Pacific Dept
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Series:
IMF Staff Country Reports
Volume/Issue:
Volume 2016: Issue 206
Language:
English
Publication Date:
30 Jun 2016
DOI:
https://doi.org/10.5089/9781475567342.002
ISBN:
9781475567342
ISSN:
1934-7685
Pages:
63
Keywords:
ISCR; CR; deficit; current account; authority; authorities endeavor; real GDP; Indian rupee; growth slowdown; staff's advice; monetary policy transmission mechanism; staff's suggestion; Credit; Public and publicly-guaranteed external debt; Imports; South Asia; Global; Middle East
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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.
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Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund