The real Gross Domestic Product (GDP) of Bhutan’s economy in 2006 was 8.5%, an increase from 7.1% in 2005.

According to the annual report published by the Royal Monetary Authority (RMA), the increase in GDP was driven by the commissioning of the Tala Hydro Power Project.

The report states that the tertiary sector was the main contributor to the growth followed by secondary and the primary sectors. The tertiary sector includes the service industry, wholesale and retail trade, finance and insurance.

The secondary sector includes manufacturing, electricity and construction. Agriculture, livestock production, forestry, mining are included in the primary sector.

The report for the past five years sectoral contribution to the GDP shows that the growth in the secondary sector is more or less the same. While the share of the tertiary sector has been growing, the primary sector shows a decreasing trend.

The RMA’s annual report 2006-2007 states that the sectoral trend reveals a gradual shift of the Bhutanese economy towards the service sector. The tertiary services sector grew the fastest at 10.6% in 2006.

Within the tertiary sector, the hotel and restaurants sector grew by more than 32% followed by transport, storage and communications which grew at 18.3%.  Source: BBS