Economic
Bhutan's economy to grow 6.86% in 2026 amid slower hydropower boost
Projection of slower economic growth in 2026 due to deceleration in hydropower and construction sectors.
Bhutan’s economy is projected to grow by 6.86 percent in 2026, a slowdown from an estimated 8.71 percent in 2025. The economic outlook attributes this deceleration largely to the normalization of growth in the electricity subsector following the one‑off boost from the commissioning of the PHPA‑II hydropower project in 2025. The industry sector’s growth is expected to ease to 12.20 percent in 2026, down from 16.69 percent in 2025, increasing sensitivity to project delays and implementation risks in the hydropower sector. The government’s medium‑term growth plan remains dependent on major hydropower and construction projects, making the economy vulnerable to slippages that could materially affect GDP and fiscal stability.
- Status
- active
- Location
- Bhutan
- Date added
- 2026-03-25 10:01 UTC
- Last updated
- 2026-03-25 10:01 UTC
- Connected threats
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- Not Available