On 13 December 2023, Bhutan graduated from the United Nation’s Least Developed Countries (LDCs) category, becoming the seventh country to achieve this critical development milestone.  

Despite achieving this significant milestone, the country still faces economic hurdles- slow recovery from the pandemic, youth unemployment, out-migration, and a narrow economic base. Declining fertility rates, widening trade deficits and climate change are other challenges impeding growth. In response, Bhutan launched the 21st Century Economic Roadmap: A 10X National Economic Vision. 

Guided by its unique development philosophy of Gross National Happiness (GNH), Bhutan has long balanced economic growth with the well-being of its people and environment conservation. Now, the nation is charting a course for a future-ready economy to further enhance the well-being of all Bhutanese. An economy that is resilient, inclusive and sustainable, grounded in the principles of GNH, environmental stewardship and equitable growth. 

The 10X national economic vision 

Bhutan’s 21st Century Economic Roadmap – A 10X National Economic Vision, supported by UNDP, is a strategic roadmap to transform the country into a developed economy and increase its real GDP tenfold from the current approximate of US$ 2.5 billion by 2050.  

The roadmap envisions a diversified economy, with an emphasis on strengthening existing core industries – hydropower, agriculture and tourism – as the main drivers of growth, while also looking to high-potential, emerging industries, such as digital economy, services sector, manufacturing, and sustainable mining and mineral processing, to propel the economy. 

Fortifying key economic pillars 

The hydropower, agriculture and tourism sectors together account for almost a quarter of the GDP today. The roadmap includes ambitious targets for these core industries with the hydropower sector expanding capacity to 25,000 MW by 2050, while diversifying renewable energy sources beyond hydropower, such as solar, wind and hydrogen. 

The agriculture sector, another cornerstone of Bhutan’s economy, will evolve into a high-value, export-oriented industry, with an emphasis on organic and niche products. In tourism, the country aims to reinvent its high-value, low-volume model to attract premium markets, tapping into emerging sectors like wellness and adventure tourism. 

Eyeing emerging sectors to fuel inclusive growth 

Strategic investments will be made in digital economy, services sector, manufacturing, and mining and mineral processing with the goal to drive 30-50% contribution to GDP by these new emerging sectors. These sectors are expected to create knowledge-based jobs, integrate Bhutan into global value chains, and diversify the country’s economic base.  

Strategic enablers for growth 

To translate the 10X economic growth vision into reality, Bhutan will pursue multiple initiatives across seven enablers that will support the sector initiatives. These enablers are policy and governance excellence, private sector development, human capital enhancement, infrastructure improvements, market access expansion, financial ecosystem strengthening, and fostering innovation. 

How UNDP supported  

The 21st Century Economic Roadmap- A 10X National Economic Vision was developed through Bhutan’s Opportunities for Leadership in Development (BOLD) initiative, supported by the UNDP. BOLD is a high-level policy advisory project, co-financed by Core Resources and the Royal Government of Bhutan. 

This partnership underscores the importance of Core Resources, which enables UNDP to respond to countries’ critical emerging needs swiftly and decisively and with agility. Core Resources not only help UNDP to address immediate development needs but also unlock new opportunities and partnerships for a sustainable and inclusive future.  

Responding effectively to complex development challenges requires pioneering new, bold solutions. This is exactly what Bhutan’s 10X national economic vision is about. It provides a clear, strategic long-term growth focus, as well as strategies to tackle emerging challenges and opportunities head-on. 

For media enquiries, please contact:

Ms. Dechen Wangmo, Communications and Partnerships Analyst| E-mail: dechen.wangmo@undp.org.