Country Profile: Bhutan

Bhutan, a landlocked kingdom in Southern Asia, is situated between China and India. With a population of approximately 892,877, the nation is known for its unique approach to governance through the Gross National Happiness index, which emphasizes well-being over economic growth. Economically, Bhutan is bolstered by significant investments in hydropower and has experienced a decline in poverty rates despite climate vulnerabilities. The country operates as a constitutional monarchy, with a political landscape shaped by a blend of tradition and modern democratic practices.

Geography

Bhutan is characterized by its predominantly mountainous terrain, with fertile valleys and a mean elevation of 2,220 meters. The country has a total area of 38,394 square kilometers, which is slightly larger than Maryland. It shares land borders with China to the north and India to the south, controlling several strategic Himalayan mountain passes.

1,136 km of land boundaries with China (477 km) and India (659 km).
Highest point: Gangkar Puensum at 7,570 m.
70.6% of the land is forested (2023 est.).
Climate varies from tropical in the southern plains to severe in the Himalayas.

People and Society

The population of Bhutan is estimated at 892,877 in 2025, showing a growth rate of 0.93%. The society is diverse, consisting of various ethnic groups—50% Ngalop, 35% ethnic Nepali, and 15% indigenous or migrant tribes. The official language is Dzongkha, and over 75% of the population practices Lamaistic Buddhism.

44.4% of the population resides in urban areas (2023).
Life expectancy at birth: 73.7 years (2024 est.).
The median age of the population is 31.2 years (2025 est.).
Literacy rate is 64.9% (2022 est.), with a disparity between male (73.4%) and female (57%) literacy.

Economy

The economy of Bhutan is primarily driven by hydropower investments, which are critical for development. In 2023, the real GDP (PPP) is estimated at $11.517 billion, with a growth rate of 4.9%. The composition of the economy is diverse, with services accounting for 52.7% of GDP.

15% of GDP comes from agriculture, while industry accounts for 29.6% (2023).
Unemployment rate projected at 2.9% (2024 est.).
Poverty rate stands at 12.4% (2022 est.).
Exports mainly consist of iron alloys and cement, with 92% of exports going to India (2023).

Government

Bhutan functions as a constitutional monarchy, with King Jigme Khesar Namgyel Wangchuck as the head of state since 2006. The government is structured into a bicameral Parliament consisting of the National Assembly and the National Council. The democratic framework was established with the adoption of the constitution in 2008.

The capital is Thimphu, located at 27 28 N, 89 38 E.
Citizens must be 18 years or older to vote.
The legal system is based on civil law influenced by Buddhist religious principles.

Military and Security

The military of Bhutan includes the Royal Bhutan Army, which has an estimated strength of 7,000-8,000 active personnel. The country relies on India for its defense and security, particularly following the 2007 India-Bhutan Friendship Treaty.

Military service is voluntary at 18 years; compulsory militia training exists for men aged 20-25.
Bhutan participates in international peacekeeping, with 180 troops deployed in the Central African Republic for MINUSCA (2025).

Energy

Bhutan has made significant strides in electricity access, with 100% of its population electrified as of 2022. The country's energy production is entirely dependent on hydroelectric sources, contributing to both domestic needs and exports.

Installed generating capacity of 2.344 million kW (2023 est.).
Electricity consumption reached 11.914 billion kWh in 2023.

Environment

Environmental issues in Bhutan include soil erosion and limited access to potable water. The country is a party to several international environmental agreements and actively works on biodiversity conservation.

70.6% of the land is forested, crucial for biodiversity (2023).
Urbanization rate is 2.52% annually (2020-25 estimate).

Transportation

Bhutan has a developing transportation network, with 4 airports and 8 heliports planned for 2025. The country continues to enhance access to remote regions.

Communications

Bhutan has a growing communications sector, with 88% of the population estimated to use the internet and 790,000 mobile cellular subscriptions projected for 2024.

Key Metrics

Metric	Value	Note
Population	892,877	2025 estimate
Area	38,394 sq km
GDP (PPP)	$11.517 billion	2023 estimate
Unemployment Rate	2.9%	2024 estimate
Life Expectancy at Birth	73.7 years	2024 estimate
Literacy Rate	64.9%	2022 estimate
Urban Population	44.4%	2023 estimate
Median Age	31.2 years	2025 estimate
Total Energy Consumption per Capita	64.082 million Btu/person	2023 estimate
Agricultural Land (% of Total Area)	13.8%	2023 estimate