Exports Surpass Nu 19,793 million, Imports Hit Nu 26,467 million, Revealing a – Nu 6,674 million Deficit; Electricity Exclusion Deepens Trade Woes to – Nu 17,805 million, Highlighting Energy Sector’s Crucial Role
The overall trade scenario, inclusive of electricity, showcases Bhutan’s exports at Nu 19,793 million, with imports reaching Nu 26,467 million, culminating in a trade deficit of -Nu 6,674 million. Strikingly, the exclusion of electricity amplifies this deficit to – Nu 17,805 million, underscoring the significance of the energy sector in Bhutan’s trade equations.
This is according to the Department of Trade and Economic Affairs in Bhutan has presented the Balance of Trade (BOT) figures for the 3rd quarter of 2023, spotlighting intricate trade dynamics that warrant attention.
A closer examination of Bhutan’s trade dealings with India reveals a nuanced picture. With electricity factored in, the trade deficit is -Nu 1,803 million, while excluding electricity widens the deficit to -Nu 12,934 million. Despite the deficits, the figures suggest a more equitable trade balance with Bhutan’s southern neighbor.
The story takes a distinct turn when considering Bhutan’s trade dynamics with nations beyond India. Here, the trade deficit stands at -Nu 4,871 million, signaling potential challenges in diversifying Bhutan’s global trade portfolio.
According to the Local Economist analysts posit that global economic conditions and regional trade nuances may be contributing factors to these trade imbalances. The government is expected to conduct a comprehensive review of the data, potentially paving the way for strategic policy adjustments aimed at mitigating trade deficits and fortifying Bhutan’s economic resilience.
As Bhutan navigates these intricacies in the international trade landscape, the 3rd quarter BOT report emerges as a pivotal compass, guiding business leaders and policymakers alike in making informed decisions to bolster economic stability and growth. The government’s proactive monitoring and strategic initiatives are anticipated to play a pivotal role in steering Bhutan towards a more robust and sustainable economic future.
By Kinley Yonten
