Abstract

Bhutan’s economic development has been shaped by modernization since 1952, marked by land reforms and Five-Year Plans, including the unique Gross National Happiness (GNH) framework. This study evaluates Bhutan’s economic trajectory using indicators like GDP, living standards, education, and poverty. While GDP growth is stable, with an average rate of 4.71% (2011–2021), challenges such as rising unemployment and stagnant poverty reduction persist. Bhutan has transitioned from a Least Developed Country to a middle-income economy but remains in the transitional stage of development per Rostow’s model. Strengthening secondary and tertiary sectors and equitable resource distribution are vital for sustainable progress.

Keywords: Bhutan, Gross National Happiness, GDP growth, Sustainable progress