Bhutan

UNESCAP Launch of the Asia Pacific Social Economic Survey Report

5 MAY 2011: UNESCAP LAUNCH OF THE ASIA PACIFIC SOCIAL ECONOMIC SURVEY REPORT

The UNESCAP Asia Pacific Social Economic Survey Report was globally launched on 5 May 2011. In Bhutan the report was jointed launched by the UN Resident Coordinator and the Deputy Governor of the Royal Monetary Authority of Bhutan with financial support from the UNESCAP Office.

According to ESCAP the projected growth for Bhutan in 2011 is 7.2%, ahead of Indonesia, which is listed third among the large and fast growing economies in the region. The GDP growth in the country has been and is expected to continue to be fueled mainly by the construction of hydropower plants and sale of electricity.

The 2011 edition of the Economic and Social Survey of Asia and the Pacific, the oldest annual review of development in the region, analyzes the economic recovery of the region thus far and the critical issues, policy challenges and risks facing the region in the coming months. The flagship publication of the Economic and Social Commission for Asia and the Pacific (ESCAP) - the regional arm of the UN - outlines policies to sustain dynamic growth and to make it inclusive, such as: boosting internal demand, enhancing connectivity to create a seamless and region-wide market, and building productive capacities in the least developed countries.

The Resident Coordinator also highlighted that as elsewhere in the region Bhutan also suffers from inflation as food prices continue to rise rapidly. This is mostly attributed to the fact that inflation in this country is linked to inflation in India due to the fixed currency exchange rates between the two countries. Bhutan has also seen a growth of imports higher than that of exports, which has led to a widening of trade and current account deficits in 2010. The sharp increase was reportedly due to import of machinery and other materials for the construction of the hydropower stations.

The report also underlines the remaining vulnerabilities in AP economies derived from unemployment, particularly youth unemployment, as well as from the quality of jobs and the vulnerability of workers. In this region youth are 3.2 times more at risk of being unemployed and Bhutan is no exception.

The launch was attended by government officials, people from the academia, financial analysts and the media. Invitees also participated in a question answer session led by the Deputy Governors and the UN Resident Coordinator.