ADB cuts Bhutan’s growth forecast

Asian Development Bank has downgraded the growth rate of Bhutan to 5.2 percent for 2020 citing economic impact of the COVID 19 pandemic. Previous projection was 6 percent growth in 2020. ADB said the growth rate will rebound to 5.8 percent in 2021.

The growth is based on ­­­­­high government expenditure under a new 5-year plan, and despite depressed international tourist arrivals.

The country will experience 3.8 percent inflation in 2020 and 4 percent in 2021.

Bhutan sits third highest among the SAARC members – Bangladesh on the top of the chart expecting 7.8 percent growth followed by Nepal with 5.3 percent growth.

Growth in South Asia will decelerate to 4.1 percent in 2020 and then recover to 6.0 percent in 2021, largely tracking the trend in the dominant Indian economy.