𝐎𝐏𝐈𝐍𝐈𝐎𝐍 – 𝐓𝐨 𝐒𝐞𝐜𝐮𝐫𝐞 𝐈𝐭𝐬 𝐅𝐮𝐭𝐮𝐫𝐞, 𝐁𝐡𝐮𝐭𝐚𝐧 𝐌𝐮𝐬𝐭 𝐑𝐞𝐭𝐡𝐢𝐧𝐤 𝐀𝐧𝐝 𝐑𝐞𝐛𝐮𝐢𝐥𝐝 𝐈𝐭𝐬 𝐄𝐜𝐨𝐧𝐨𝐦𝐲

Bhutan stands today at a crucial crossroads in its economic journey. After years of uncertainty and stagnation induced by the COVID-19 pandemic, the nation has started showing signs of recovery. The economy is expected to grow by 8.5% in fiscal year 2025- a figure that reflects not only resilience but also renewed energy in sectors like hydropower, domestic investment, and infrastructure development. However, while these numbers bring hope, they also mask a deeper reality: Bhutan’s economic recovery is still fragile, and unless decisive steps are taken now, the progress achieved could be short-lived.

The COVID-19 pandemic left no sector untouched. Bhutan’s traditional pillars of energy, tourism, agriculture, and manufacturing suffered tremendous setbacks, pushing the nation off its pre-pandemic growth trajectory. Tourism, once a vibrant contributor to the economy, saw a drastic fall in visitors. While Bhutan’s unique policy of “high-value, low-volume” tourism aims to protect its culture and environment, it also revealed the vulnerabilities of an economy heavily dependent on a few industries. With limited visitor inflows, many businesses collapsed, workers lost jobs, and government revenues declined. Recovery has begun, but Bhutan has not yet fully bounced back to its pre-pandemic strength.

Moreover, Bhutan faces an even more daunting challenge: the increasing outmigration of its youth and skilled professionals. A growing number of Bhutanese are seeking better educational and employment opportunities abroad, particularly in Australia, Germany, and the United States. While gaining international experience can be beneficial, the current trend reflects deeper systemic issues. It points to the lack of sufficient and rewarding opportunities within Bhutan itself. As more young, educated citizens leave, the nation risks a serious brain drain, weakening its already limited pool of human resources needed to drive economic innovation and growth.

In this context, the current economic boom, driven by hydropower and construction, offers only a temporary cushion. Bhutan must recognize that natural resources, while valuable, are finite and vulnerable. Hydropower, for instance, is highly susceptible to climate change, with unpredictable rainfall and glacial patterns posing long-term threats to electricity generation. It would be a grave mistake to over-rely on this sector without building a stronger, more diversified economic base.

The future demands a bold new strategy- one that moves beyond the traditional sectors and embraces diversified, forward-looking industries. Bhutan has immense potential in manufacturing, services, and the digital economy. The government must create an environment conducive for the growth of small and medium enterprises (SMEs), startups, and creative industries. Investment in information and communication technology (ICT) can position Bhutan as a hub for remote work, digital services, and even tech innovation, especially given its young, tech-savvy population. Similarly, sectors like green technology, sustainable agriculture, handicrafts, and wellness tourism can offer resilient and sustainable avenues for employment and growth.

This shift cannot happen overnight. It requires long-term planning, strong policy support, and consistent investment. The government must prioritize skill development programs that align with global trends, preparing young Bhutanese for emerging job markets. Universities and technical institutes must forge stronger linkages with industries to ensure that education leads to employability. Entrepreneurship must be actively encouraged with accessible financing, mentorship programs, and business-friendly regulations.

Crucially, Bhutan must also double down on its commitment to sustainable and climate-resilient growth. As the world shifts towards low-carbon economies, Bhutan has the opportunity to emerge as a model for green growth. Investments in solar and wind energy, organic farming, eco-tourism, and environmental technology will not only safeguard Bhutan’s natural heritage but also attract international partnerships and funding. By becoming a pioneer in sustainable development, Bhutan can turn its small size into an advantage- flexibly adapting and leading by example on the global stage.

However, none of these economic ambitions can be realized unless Bhutan addresses the human side of the equation. The country’s young people must see a future for themselves at home. Creating jobs is one thing; creating meaningful, fulfilling careers that allow young Bhutanese to dream big and achieve their potential is another. Public policies must focus not just on job creation, but on fostering innovation, creativity, and a spirit of entrepreneurship among the youth. Retaining talent must be treated as a national priority.

Bhutan must also be open to attracting skilled individuals from abroad. In today’s interconnected world, countries thrive when they become magnets for global talent. Bhutan could benefit from targeted programs that welcome back Bhutanese diaspora members, or even attract international experts in critical sectors like renewable energy, education, and technology.

The bottom line is this: Bhutan’s economic future depends on how effectively it can diversify, modernize, and humanize its economy. It is not enough to rest on short-term successes. The world is changing rapidly, and unless Bhutan adapts now, it risks falling behind. The focus must be on building an economy that is resilient, innovative, inclusive, and deeply rooted in the potential of its people.

The road ahead will not be easy. There will be growing pains, difficult decisions, and unforeseen challenges. But Bhutan has always been a country that valued long-term wellbeing over short-term gains- a philosophy embodied by Gross National Happiness. Now is the time to extend that vision into the economic sphere: to build an economy that not only grows, but grows in a way that supports the aspirations, dignity, and prosperity of every citizen.

The time to act is now. Bhutan must step up- boldly, wisely, and urgently so, that the dreams of its youth, the potential of its land, and the resilience of its people can all converge into a future that is not just sustainable, but truly extraordinary.
Tenzin Thinley, Mongar