Yangchen ChodenThe National Statistical Bureau is pleased to release the National Accounts Statistics 2024 in
the presence of Hon’ble Secretary, Dasho Kesang Deki, Office of the Prime Minister and
Cabinet. The GDP for 2023 recorded a growth of 4.88 percent, reaching an economic size of
Nu 249.38 billion. The growth was predominantly driven by the service sector, underscoring its
growth potential and growing importance in our economy.
Among the three broad economic sectors, the tertiary sector recorded the highest share at 55.49
percent, followed by the secondary sector at 29.55 percent. The primary sector also showed
resilience with a modest growth rate. The significant growth in the service sector was contributed
by hotels and restaurants with a 50.64 percent followed by finance and insurance at13.42
percent. This growth is, by and large, attributed to tourism and its related industries. The key
highlights are as given below:
- Gross Domestic Product (GDP)
GDP for 2023 registered a growth rate of 4.88 percent. The size of the economy increased
by Nu. 21.575 billion to Nu. 249.388 billion from Nu. 227.813 billion in 2022. This is
equivalent to USD 3,019.13 million from USD 2,898.27 million in 2022. Key sectors
contributing to the growth include:
i) Hotels & Restaurants – grew by 50.64 percent.
ii) Mining and Quarrying – grew by 36.96 percent.
iii) Finance and Insurance- grew by 13.42 percent. - Structure of the Economy
Among the three broad economic sectors:
i) Tertiary sector has the highest share of the economy with 55.49 percent.
ii) Secondary sector with 29.55 percent, and
iii) Primary sector with 14.96 percent.
These shifts indicate the growing prominence of the services sector in the economy.
2.1. Primary Sector
The primary sector experienced a growth of 1.37 percent after recording a negative growth
of -1.15 percent in 2022 for the first time. The growth is primarily attributed to the better
performance by the livestock and forestry sub-sectors, while the agriculture (crops) sub-
sector observed a negative growth of -1.95% compared to the previous year. The total
Gross Value Added (GVA) of the primary sector in 2023 was Nu. 37,312.31 million in
2023.
2.2. Secondary Sector
The secondary sector recorded a negative growth of -0.03 percent in 2023, a contraction of
5.63 percentage points as compared to 5.60 percent in the previous year. The sector had
negative contribution to the overall GDP growth by -0.01 percentage points. Among the
sub-sectors, the construction and electricity sub-sectors were responsible for the overall
drop in the growth of the sector. The total Gross Value Added (GVA) of the secondary
sector was estimated at Nu. 73,701.97 million.
2.3. Tertiary Sector
The Tertiary sector registered 8.61 percent growth in 2023, up from 6.62 percent in the
previous year, marking an increase of 1.99 percentage points. This consecutive growth
improvement is noteworthy, considering the negative growth of -10.86 percent in 2020 due
to the Covid -19 pandemic. The service sector made a substantial contribution to the
overall GDP growth by 4.71 percentage points in 2023. The sector recorded a GVA of Nu.
138,373.90 million in 2023.
- GDP by Expenditure
In terms of the GDP by expenditure, the Final Consumption Expenditure (FCE) consisting
of Household and Government final consumption expenditure as mentioned below grew by
5.78 percent in 2023.
i) Final Consumption Expenditure (FCE): Grew by 5.78 percent.
a. Household Final Consumption Expenditure: Increased by 7.61 percent.
b. Government Final Consumption: Grew by 1.41 percent.
ii) Export of Goods and Services: Increased by 30.68 percent.
iii) Import of Goods and Services: Decreased by 0.61 percent.
iv) Gross Domestic Capital Formation (GFCF): Contracted by 12.61 percent after a
robust growth of 28.84 percent in 2022. - Gross National Income (GNI)
GNI registered a growth of 4.54 percent in 2023, down from 5.73 percent in 2022. The
inflow of primary income was recorded at Nu 2,947 million as compared to Nu 2,602.10 in 2022.
The primary income outflow to the Rest of the World (RoW) was Nu 16,677.36
million, compared to Nu 14,436.85 million the previous year.
5. Per Capita GDP
GDP per Capita – increased to Nu 323,764.71 (US $3,919.55) from Nu 301,289.48 (US $3,833.03) in 2022.
6. Inflation
GDP Deflator (Implicit Price Deflator) for 2023 was 4.37 percent, compared to 5.79 percent in 2022, indicating price moderation in goods and services produced domestically. Consumer Price Index (CPI): Annual price change stood at 4.23 percent in 2023, down from 5.64 percent in 2022.
7. National Saving and Investment
Gross National Savings consisting of Government and Private savings (Nu. 49,129.23 million) an increased from Nu 48,361.04 million in 2022. i) Government Savings: Deficit of Nu -9,559.87 million.
ii) Private Savings (including households, private, and public corporations):
Amounted to Nu 58,689.09 million.
The domestic investment demand outpaced national savings, resulting in a saving-investment gap of Nu 54,785.20 million. The Saving Investment ratio was recorded at 0.44, indicating that national savings financed only 44 percent of the total domestic investment in 2023. However, this was an improvement from 2022, where national savings financed 38 percent of the domestic investment.
