That dollar amount results from a -1.9% slowdown compared to $444.1 million 5 years earlier in 2019.
Year over year, Bhutan’s exports flatlined via a -0.5% downturn compared to $437.9 million starting from 2022.
Based on the average exchange rate for 2022, the Bhutan ngultrum depreciated by -17.3% against the US dollar since 2019 and diluted by -5.1% from 2022 to 2023. Bhutan’s weaker local currency makes its exports paid for in stronger US dollars relatively less expensive for international buyers.
Bhutan is a landlocked South Asian country located in the Eastern Himalayas in close proximity to economic powerhouses China and India.
Bhutan’s 3 largest exports by value are predominantly iron ferroalloys, dolomite, and monumental or building stone such as granite or sandstone. Collectively, that trio of leading products represents nearly two-thirds (64.3%) of the overall value of exported products from Bhutan.
Bhutan’s Major Trading Partners
The latest available country-specific data shows that 99.7% of products exported from Bhutan was bought by importers in: India (77.6% of the Bhutanese total), Bangladesh (14%), Italy (4.2%), Nepal (2%), mainland China (0.8%), Spain (0.33%), Netherlands (0.3%), France (0.12%), Japan (0.11%), Vietnam (0.08%), United Arab Emirates (0.07%) and Poland (0.06%).
From a continental perspective, 94.8% of Bhutan’s exports by value was delivered to fellow Asian countries while 5.1% was sold to importers in Europe. Bhutan shipped another 0.06% worth of goods to buyers in North America.
Tinier percentages went to customers in North America (0.06%), Oceania’s Australia (0.01%) then Latin America (also 0.01%) excluding Mexico but including the Caribbean.
Given Bhutan’s population of 767,000 people, its total $435.6 million in 2023 exports translates to roughly $570 for every resident in the landlocked Asian nation. That dollar metric exceeds the average $520 per capita one year earlier during 2022.
Bhutan’s Top 10 Exports
The following export product groups represent the highest dollar value in Bhutanese global shipments during 2023. Also shown is the percentage share each export category represents in terms of overall exports from Bhutan.
- Iron, steel: US$221.7 million (50.9% of total exports)
- Salt, sulphur, stone, cement: $142.7 million (32.8%)
- Beverages, spirits, vinegar: $20.6 million (4.7%)
- Coffee, tea, spices: $16 million (3.7%)
- Fruits, nuts: $8 million (1.8%)
- Inorganic chemicals: $7.8 million (1.8%)
- Vegetables: $5.3 million (1.2%)
- Vegetable/fruit/nut preparations: $4.2 million (1%)
- Wood: $3.2 million (0.7%)
- Plastics, plastic articles: $1.2 million (0.3%)
Bhutan’s top 10 export product categories accounted for 98.9% of the overall value of its global shipments.
Vegetable, fruit or nut preparations represent the fastest grower among the top 10 export categories, up by 636.2% from 2022 to 2023.
In second place for improving export sales was plastics, encompassing materials plus items made from plastic, via a 47.4% advance.
Bhutan’s shipments of beverages, spirits and vinegar posted the third-fastest gain in value, up by 31.6%.
The leading decliner among Bhutan’s top 10 export categories was vegetables, recording a -15.8% year-over-year drop.
At the more granular four-digit Harmonized Tariff System code level, iron ferroalloys are Bhutan’s most valuable exported product accounting for 46.9% of the country’s total. In second place was dolomite (10.9%) trailed by Bhutan’s exports of monumental or building stone such as granite or sandstone (6.6%), gypsum or anhydrite plasters (4.8%), hydraulic cements (4.7%), pebbles, gravel, broken or crushed stone (4.6%), nutmeg and cardamoms (3.4%), semi-finished iron or non-alloy steel products (2.8%), non-alcoholic beverages excluding water, juice and milk (1.8%), then fresh or dried citrus fruit (1.6%).
Products Generating Bhutan’s Largest Trade Surpluses
The following types of Bhutanese product shipments represent positive net exports or a trade balance surplus. Investopedia defines net exports as the value of a country’s total exports minus the value of its total imports.
In a nutshell, net exports represent the amount by which foreign spending on a home country’s goods or services exceeds or lags the home country’s spending on foreign goods or services.
- Iron, steel: US$136.2 million (Down by -23.8% since 2022)
- Salt, sulphur, stone, cement: $133.2 million (Up by 28.1%)
- Coffee, tea, spices: $12 million (Down by -11.7%)
- Beverages, spirits, vinegar: $10.8 million (Up by 116.7%)
- Inorganic chemicals: $5.5 million (Down by -1.9%)
- Collector items, art, antiques: $58,000 (Down by -63.3%)
- Tin: $45,000 (Down by -26.2%)
- Woodpulp: $21,000 (Down by -54.3%)
Bhutan has highly positive net exports in the international trade of iron and steel. In turn, these cashflows indicate Bhutan’s strong competitive advantages under the iron and steel product category.
Products Causing Bhutan’s Worst Trade Deficits
Bhutan incurred an overall -US$956.9 million product trade deficit for 2023, expanding by 26.3% from -$757.6 million in red ink one year earlier for 2022.
Below are exports from Bhutan that result in negative net exports or product trade balance deficits. These negative net exports reveal product categories where foreign spending on home country Bhutan’s goods trail Bhutanese importer spending on foreign products.
- Mineral fuels including oil: -US$238.8 million (Down by -1.6% since 2022)
- Machinery including computers: -$155.5 million (Down by -48.6%)
- Electrical machinery, equipment: -$143.4 million (Down by -16.5%)
- Cereals: -$49 million (Up by 8.9%)
- Plastics, plastic articles: -$40.1 million (Up by 0.3%)
- Wood: -$39.8 million (Down by -23.3%)
- Articles of iron or steel: -$38.5 million (Up by 1%)
- Books, newspapers, pictures: -$28.6 million (Up by 53.9%)
- Dairy, eggs, honey: -$26.8 million (Down by -1.6%)
- Animal/vegetable fats, oils, waxes: -$24.8 million (Down by -23.8%)
Bhutan has highly negative net exports and therefore deep international trade deficits for mineral fuels-related goods–particularly refined petroleum oils and coal including coal coke or semi-coke.
Bhutanese Export Companies
Not one Bhutanese corporation ranks among Forbes Global 2000 largest companies on the planet.
According to Alibaba.com listings, the following companies are examples of companies located in Bhutan. Within parentheses are products exported from the Eastern Himalayan country.
- Bhutan Exporting Co. (scarves, other clothing)
- Colorful Bhutan (supplements)
- DoriLtd (wood pellets)
- The Himalaya Enterprise (pure honey)
Wikipedia also lists businesses with exposure to international trade operating out of Bhutan. Selected examples are shown below.
- Bhutan Airlines (airliner)
- Bhutan Postal Corp (delivery services)
- Mountain Hazelnuts Group (food products)
- Royal Monetary Authority of Bhutan (central bank)
- Tashi Group (conglomerate)
In macroeconomic terms, Bhutan’s total exported goods represent 3.6% of its overall Gross Domestic Product for 2023 ($12.05 billion valued in Purchasing Power Parity US dollars). That 3.6% for exports to overall GDP in PPP for 2023 compares to 4% for 2022. Those percentages suggest a relatively decreasing reliance on products sold on international markets for Bhutan’s total economic performance, albeit based on a short timeframe.
Another key indicator of a country’s economic performance is its unemployment rate. Bhutan’s unemployment rate averaged 3.5% for 2023, down from an average 5.9% jobless rate in 2022 based on International Monetary Fund statistics.
Bhutan’s capital city is Thimphu.
See also Top Asian Export Countries, India’s Top 10 Exports, India’s Top Trading Partners and Bangladesh’s Top 10 Exports
Research Sources:
Central Intelligence Agency, The World Factbook South Asia: Bhutan. Accessed on November 23, 2024
Forbes Global 2000 rankings, The World’s Biggest Public Companies. Accessed on November 23, 2024
International Monetary Fund, World Economic Outlook Database (GDP based on Purchasing Power Parity). Accessed on November 23, 2024
International Trade Centre, Trade Map. Accessed on November 23, 2024
Investopedia, Net Exports Definition. Accessed on November 23, 2024
United States Census Bureau, Foreign Trade . Accessed on November 23, 2024
Wikipedia, Bhutan. Accessed on November 23, 2024
Wikipedia, Gross domestic product. Accessed on November 23, 2024
Wikipedia, List of Companies of Bhutan. Accessed on November 23, 2024
Wikipedia, Purchasing power parity. Accessed on November 23, 2024