Country makes considerable economic growth

Thimphu, June 09: The average economic growth rate of country's economy remained at an average of 7.5 over the last five years, the report presented by the Finance Minister Wangdi Norbu to the National Assembly on Friday said.

Service sector grew the fastest, followed by manufacturing, electricity and construction. Lending rates in this period that dropped to 10 percent fueled the growth.

Average Balance of Trade marked 19 percent of the GDP and Balance of Payments (BoP) showed a surplus of 4.5 percent of the GDP.

Foreign exchange reserve is enough for 16 months of merchandise imports.

Government expenditures grew by about 8 percent after July last year which constitutes 35.6 percent of the GDP.

The national revenues from a non-existent amount had grown to Nu. 6,902 million by fiscal year 2005-06 and the growth in the last five years was 7.86 percent per annum.

Grants covered more than 39 percent of total outlays and over 78 percent of capital expenditures.

Overall deficits remained at four percent of GDP. Government target for five percent.

External borrowings covered 10 percent of the total outlays and 20 percent of capital expenditures. The external debt service ratio averaged 8.2 percent of exports.

Contribution of the financial sector to GDP was 3.9 percent.

The total assets of state owned corporations grew from Nu.12,791.7 million to Nu.27,683 million and the profits from these corporation grew from Nu. 2,609 million in 2002 to Nu. 5,082.93 million in 2006. Bhutan News Service