Bhutan’s Ambitious Economic Vision

Bhutan is on a mission to diversify its economy beyond its renowned Gross National Happiness index. The government is actively seeking to attract investors and foster new industries by leveraging its clean energy resources and the establishment of special economic zones. However, this transformation is not without its hurdles.

The Challenge of Brain Drain

Recent statistics reveal that approximately 13,500 Bhutanese, accounting for 1.6% of the nation’s population of nearly 800,000, relocated to Australia in 2023. This migration trend underscores a pursuit of opportunities in larger markets, resulting in a shortage of skilled professionals within Bhutan. The country’s geographical positioning, landlocked between India and China, further complicates infrastructure development and trade logistics.

Harnessing Hydropower for Economic Growth

Bhutan’s economy is heavily reliant on its hydropower sector, with 2.5 gigawatts currently in operation and an additional 3 gigawatts under construction. This abundant, clean energy source offers potential for powering various industries, including manufacturing, data centers, and green technology initiatives. Reports from Druk Holdings and Investments (DHI), Bhutan’s sovereign wealth fund, suggest that these sites could serve as testing grounds for innovative technologies such as pump-storage systems and hydrogen production. Successful projects in Bhutan could pave the way for regional adoption.

The Rise of Bitcoin Mining

According to a Fortune report, Bitcoin mining represents a unique venture for Bhutan. The country ventured into cryptocurrency mining in 2019 when the price of Bitcoin was under $10,000. As of May 7, 2025, Bitcoin’s value stands at approximately $97,400. DHI highlights the low-carbon footprint of hydropower-driven mining operations, which contribute to the fund’s $3 billion portfolio. Despite the volatility of cryptocurrency markets, DHI considers Bitcoin to be “digital gold,” forming a key component of a diversified investment strategy.

Gelephu Mindfulness City: A Vision for the Future

Planning documents outline the development of Gelephu Mindfulness City, a sprawling 2,500-square-kilometer zone near the Indian border. This special economic area is designed to connect Bhutan with South and Southeast Asia, offering opportunities for health clinics, technology startups, and green-energy companies. The project envisions a harmonious blend of work and well-being, but its success hinges on the completion of essential infrastructure, including roads, digital networks, and housing. The full realization of this venture will require substantial time and investment.

Economic Indicators and Future Prospects

Bhutan’s Gross National Happiness index improved from 0.743 in 2010 to 0.781 in 2022, accompanied by an increase in GDP per capita from $2,435 to $3,711. However, the 2020 pandemic caused a temporary setback. Tourism is gradually rebounding, with 145,000 visitors in the past year, compared to 315,599 in 2019. The country’s “high-value, low-impact” tourism model aims to preserve its natural beauty. Bhutan’s Druk Holdings and Investments looks to Singapore’s Temasek for governance inspiration, prioritizing agility, efficiency, and sustainable growth through clean energy.

Bhutan’s strategy is bold, marrying traditional values with opportunities in technology and finance. If successful, it could entice young talent to remain and foster small-scale projects into significant economic drivers. However, missteps in hydropower, cryptocurrency, or urban development could strain Bhutan’s limited resources. Both investors and citizens are keenly observing these developments.