Big Experience... Book a Trip!

Bhutan may no longer be known as LDC by 2021

Bhutan will make the leap from Least Developed Countries (LDCs) in 2021 according to a UNDP report presented by economic advisor Richard Marshall in the 12th Round Table Meeting on December 11. For this purpose, the country will be assessed on three criteria: Gross National Income (GNI) per capita, Human Asset Index (HAI) and Economic Vulnerability Index (EVI). If the country meets any two of them, it will graduate from the position of LDC.  The report states that Bhutan’s GDP has doubled in the past 10 years from USD 690 in 2006 to USD 1,700 in 2012. As of last year, a country’s GNI had to be USD 1,100 to raise itself from the LDC group. With the commissioning of two new hydropower projects, it’s expected that Bhutan will be able to meet the criteria even if the GNI bar goes up to USD 2,740 in 2015. However, the flip side of the coin is that less donor agencies will be willing to spend on the country plus declined trade concessions.