Driven by the commissioning of the 1,020 MW Punatsangchhu-II Hydroelectric Power Plant (PHPA-II), Bhutan’s economy achieved an 8.52% real GDP growth in 2025, up from 7.84% in 2024. According to the National Statistics Bureau, the surge was heavily anchored by a 27.16% expansion in the electricity sector as total power generation grew by nearly 29%. This energy surge lifted the broader secondary sector—including construction and industry—by 16.10%, pushing nominal GDP to Nu 318.48 billion and per capita GDP to Nu 406,204 (USD $4,660). Robust domestic demand further bolstered momentum, reflected in a 42.57% leap in gross capital formation and notable expansions in financial services (14.29%), ICT (14.18%), and tourism-linked hospitality (9.89%).
Despite these strong headline numbers, the growth highlights persistent structural vulnerabilities and external pressures. Strong investment and infrastructure activity drove a 60.56% surge in imports, vastly outstripping a 35.46% export growth and widening the trade deficit to Nu 97.18 billion (30.51% of GDP). Furthermore, economic diversification remains a challenge as the primary sector slowed to 1.85% growth and mining contracted by 5.77% for a second consecutive year. Price pressures remained relatively stable, with overall inflation at 4.52% and consumer inflation moderately rising to 3.50%.