Investing in Bhutan in 2026
South Asia
38
Score
Caution Investment Destination
Significant risks present - experienced investors with hedging strategies
Bhutan earns an investment score of 38/100, placing it in the caution category for global investors. Significant risks present - experienced investors with hedging strategies. The country's standout dimensions are political stability (55/100) and growth potential (40/100), with overall GDP of $2.8B and per-capita output of $3,500. Growth is running at 4.0% with 0.5% of GDP arriving as foreign direct investment. Inflation is contained at 4.0%. The sovereign holds a NR credit rating, generally considered speculative-grade with elevated default risk. Investment opportunities cluster around Hydropower (sector score 72/100, currently growing), which represents 15% of GDP. Trade openness sits at 85% of GDP, a useful proxy for how integrated Bhutan is with the global economy.
How Bhutan's investment score has evolved over time
Hydropower
15% of GDP, growing
Tourism
5% of GDP, growing
Agriculture
15% of GDP, stable
World Bank Governance Indicators (-2.5 to +2.5, higher is better)
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Is Bhutan a safe country to invest in?
Bhutan carries a caution risk rating with an overall investment score of 38/100. Significant risks present - experienced investors with hedging strategies. Sub-scores: economic health 32/100, political stability 55/100, business climate 35/100, financial strength 28/100, growth potential 40/100.
What is Bhutan's sovereign credit rating?
Bhutan holds a credit rating of NR, reflecting its ability to meet sovereign debt obligations. Credit ratings are a key signal of macro-financial health and a prerequisite many institutional investors require before allocating capital.
What are the strongest sectors for investment in Bhutan?
The top investment sectors in Bhutan are Hydropower, Tourism, Agriculture. Hydropower leads with a sector score of 72/100 and represents 15% of GDP. Its current trend is growing.
What is Bhutan's GDP growth rate?
Bhutan's most recent GDP growth was 4.0%, with total GDP of $2.8B and GDP per capita of $3,500. Inflation is running at 4.0% and the current account balance is -22.0% of GDP.
How does Bhutan score on governance and rule of law?
On the World Bank Governance Indicators (scale -2.5 to +2.5, higher is better), Bhutan scores: political stability 1.0, rule of law 0.5, corruption control 1.0, and regulatory quality -0.2.
Can foreigners invest in Bhutan?
Most industries in Bhutan are open to foreign direct investment, though specific sectors may require a local partner, government approval, or special licensing. Consult a qualified local advisor for restrictions that apply to your sector.
What is foreign direct investment (FDI) like in Bhutan?
Foreign Direct Investment in Bhutan runs at 0.5% of GDP, while the trade openness ratio (exports + imports as a share of GDP) stands at 85%. These figures show how integrated Bhutan is with the global economy and how welcoming it has been to international capital.
What is the public debt level in Bhutan?
Bhutan's government debt stands at 120% of GDP. This is elevated by international standards and warrants attention from creditors and rating agencies.