What predictions can you make for Bhutan's economic future?

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Explanation:

In its latest South Asia Economic Focus, Spring 2020, the World Bank estimates that Bhutan’s Real GDP growth in the fiscal year 2020 will decelerate in the range of 2.2 to 2.9 percent depending on how long the pandemic lasts.

Before the pandemic, the country’s growth projection for the year was at 6.5 percent.

The World Bank says that the pandemic will adversely affect agriculture, construction, and export sectors due to disruptions on the supply side such as labour shortages and lower external demand. The trend is likely to continue until the end of 2021.

Growth slowdown in India is expected to dampen external demand, particularly for non-hydro goods and services from Bhutan.

Economic Affairs Minister Loknath Sharma in an earlier interview said that the government was working on minimising the economic impact. Among other measures, the government plans to frontload some of the 12th Plan projects.

The country’s current account deficit is likely to persist given the country’s dependence on essential imports, both for consumption and investment.

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