Bhutan Royal Monetary Authority

Bhutan GDP Growth 6.1%, Inflation 4.5% Outlook

Bhutan's provisional GDP growth for 2024 was 6.1 percent, slightly below earlier projections due to delays in commissioning major hydropower projects (notably PHPA-II) and lower-than-expected tourist arrivals. Domestic headline inflation averaged a moderate 2.8 percent in 2024, the lowest since the COVID-19 pandemic, rising to 3.5 percent as of March 2025. Looking ahead, inflation is projected to rise to 4.5 percent in 2025 and 5 percent in 2026, fueled by persistent food inflation from adverse weather and stronger demand-side push factors due to increased public investment.