AGP Executive Report
Last update: 11 hours agoEconomic Outlook: Bhutan is projected to grow 7% in 2026 and 6.9% in 2027, but inflation is forecast to climb to 5.6% this year and the current account deficit to widen to 16.3% of GDP. Business Finance: The government will work with the Royal Monetary Authority to review banks’ lending margins, aiming to ease borrowing costs for SMEs without imposing a blanket rate cap. Energy: Electricity supply rose 32.8% in 2025, but petrol imports increased 38.7% and diesel imports 27.5%, underscoring Bhutan’s continued exposure to imported fuel. Trade Promotion: The Bhutan Chamber of Commerce and Industry has set aside Nu 16.3 million for trade fairs and exhibitions in 2026-27, but Nu 4.43 million of its total Nu 38.59 million workplan remains unfunded. Development Funding: India handed over Nu 2.9 billion for Bhutan’s 13th Five-Year Plan projects, including investments in education, agriculture, infrastructure and renewable energy. Tourism: Monggar is targeting more than 5,000 visitors next year, up from over 2,000 last year, with new food events and outdoor activities planned.
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