Country Profile: Bhutan

Bhutan, known as the "Land of the Thunder Dragon," is a landlocked nation located in Southern Asia, nestled between China and India. Its mountainous terrain gives way to fertile valleys, with a population projected to reach approximately 892,877 by 2025. The country's economy is primarily driven by hydropower and agriculture, benefiting from strong ties with India while embracing a unique philosophy of Gross National Happiness. Governed as a constitutional monarchy, Bhutan has seen significant democratic reforms and a gradual opening to the international community.

Geography

Bhutan is characterized by its stunning mountainous landscape, with the highest point being Gangkar Puensum at 7,570 meters. The country spans an area of 38,394 square kilometers and shares borders with China and India, with a total land boundary of 1,136 kilometers. As it is landlocked with no coastlines, Bhutan controls important Himalayan passes and experiences a varied climate ranging from tropical in the southern plains to harsh winters in the northern areas.

100% of Bhutan's land is mountainous.
70.6% of the land is forested as of 2023.
13.8% of land is used for agriculture (2023 est.).
2.6% of the land is arable (2023 est.).
320 sq km of land was irrigated in 2012.

People and Society

Bhutan's population is projected at 892,877 in 2025, with a diverse ethnic composition of 50% Ngalop, 35% ethnic Nepali, and 15% from indigenous or migrant tribes. The official language is Dzongkha, and a majority (75.3%) practice Lamaistic Buddhism. Bhutan has a youthful population, with a median age of 31.2 years and a birth rate of 15.05 births per 1,000. Urbanization is increasing, with 44.4% of the population living in urban areas as of 2023.

73.7 years is the life expectancy at birth (2024 est.).
64.9% of the total population is literate (2022 est.).
2.9% unemployment rate anticipated in 2024.
18.5% of adults use tobacco as of 2025.
12.4% of the population lived below the poverty line in 2022.

Economy

Bhutan's economy is heavily influenced by its hydropower investments, which are central to its development strategy and GDP growth. The GDP (purchasing power parity) is estimated at $11.517 billion for 2023, with a growth rate of 4.9%. Agriculture, services, and industry account for 15%, 52.7%, and 29.6% of GDP respectively. The currency is stable, with an inflation rate of 4.2% in 2023, reflecting sound fiscal policies.

$14,600 is the estimated GDP per capita for 2023.
3.019 billion is the GDP at official exchange rates for 2023.
406,500 is the labor force size estimated for 2024.
28.3% of GDP is constituted by exports (2023 est.).
$944.391 million in exports anticipated for 2024.

Government

Bhutan operates as a constitutional monarchy, with King Jigme Khesar Namgyel Wangchuck as its head of state since December 2006. The legislature comprises a bicameral parliament, consisting of a National Assembly and a National Council. Bhutan's judiciary is based on civil law stemming from Buddhist principles. The nation has made strides toward democracy, with parliamentary elections held regularly since 2008.

Bhutan's government was established as a unified kingdom on 17 December 1907.
The current constitution was ratified on 18 July 2008.
47 members serve in the National Assembly, as of the recent election in January 2024.

Military and Security

The Royal Bhutan Army (RBA) is the primary military force comprising approximately 7,000 to 8,000 active personnel. Bhutan maintains a voluntary military service at 18 years old, and men aged 20-25 undergo compulsory militia training. The military is primarily focused on external threats and collaborates closely with India on security matters.

180 personnel are deployed in the Central African Republic for peacekeeping (2025).
The military possesses light arms and some heavy equipment from former Soviet Union and Indian sources.
The RBA includes an air wing and a royal bodyguard unit.

Energy

Bhutan boasts an electrification rate of 100% as of 2022, primarily due to its significant investment in hydropower, which accounts for all its electricity generation capacity. The country exported 6 billion kWh in 2020, showcasing its surplus energy production capability, while it imports a smaller amount.

2.344 million kW is the installed generating capacity for 2023.
Total energy consumption per capita is estimated at 64.082 million Btu for 2023.

Communications

Bhutan has made considerable advancements in communication, with 88% of the population estimated to be internet users in 2023. Mobile cellular subscriptions reached 790,000, indicating a growing trend toward connectivity. However, fixed-line services remain unavailable.

10,000 broadband subscriptions exist per 2023 estimates.
The number of mobile subscriptions per 100 inhabitants stands at 100 (2024 est.).

Transportation

Bhutan operates 4 airports and 8 heliports, facilitating both domestic and international connectivity. The transportation network is essential for linking the mountainous terrain with urban centers.

The country code prefix for civil aircraft registration is A5.

Key Metrics

Metric	Value	Note
Population	892,877 (2025 est.)
Area	38,394 sq km
Real GDP (PPP)	$11.517 billion	2023 estimate
GDP per capita (PPP)	$14,600	2023 estimate
Unemployment rate	2.9%	2024 est.
Birth rate	15.05 births/1,000	2025 est.
Life expectancy	73.7 years	2024 est.
Literacy rate	64.9%	2022 est.
Urban population	44.4%	2023 est.
Electric consumption	11.914 billion kWh	2023 est.