Economic growth goes down

Thimphu, May 01: The economic growth of Bhutan came down drastically in 2005 compared to 2001 and 2004. Thus, the Gross Domestic Product (GDP) growth has been dropped to 6.5 percent in 2005 from 6.8 in the previous year.

The annual report of the Royal Monetary Authority states that this was because of decline in activities in construction sector.

The implication is observed in transport, storage and communications sectors as well. But tourism, power and financial sectors managed growth. The growth is power is due to commissioning of the Basochhu project.

Service sector like wholesale and retail trade, restaurants and hotels, transport, storage and communications, finance, insurance and real estate, community, social and personal services and private social, personal and recreational services have become the major components to the growth accounting 41.8 percent of the total GDP.

Manufacturing, electricity and construction contributed 34.4 percent and agriculture produce, livestock production, forestry and logging and mining and quarrying contributed 23.8 percent.

Service sector grew at 13 percent, primary and secondary sectors at 1.2 and 2.6 percent in 2005 compared with 1.6 and 4.5 in 2004. Bhutan News Service