{
  "title": "Bhutan: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Bhutan",
  "publication": "IMF Staff Country Reports, June 30, 2016",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2016/12/31/bhutan-2016-article-iv-consultation-press-release-staff-report-and-statement-by-the-44036",
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  "summary": "This paper discusses the recent economic developments, outlook, and risks for Bhutan. Following a slowdown in activity in the wake of the rupee shortage, economic growth has picked up more recently.",
  "sections": [
    {
      "heading": "Recent economic developments",
      "content": "- Economic growth slowed in the wake of the rupee shortage but has picked up more recently.\n- From an average of about 8 percent during the Ninth and Tenth Five-Year Plans spanning fiscal years (FYs) 2003/04–2012/13, real GDP growth fell below 4 percent in FY2012/13 and FY2013/14.\n- Hydropower sector developments are central to recent performance and short-term dynamics."
    },
    {
      "heading": "Medium-term outlook and drivers",
      "content": "- Bhutan’s medium-term outlook is characterized as favorable.\n- Commissioning of new hydropower generation projects will boost:\n  - output,\n  - exports,\n  - fiscal revenues."
    },
    {
      "heading": "Risks and vulnerabilities",
      "content": "- Domestic risks highlighted:\n  - the need to manage high debt,\n  - potentially volatile hydropower-related inflows, which may fuel rapid credit growth and lead to renewed external pressure.\n- External vulnerability is linked to rupee shortages and fluctuations in hydropower-related inflows."
    },
    {
      "heading": "Policy implications and staff focus",
      "content": "- Manage high public and publicly-guaranteed external debt to reduce vulnerability to external pressure.\n- Monitor and manage hydropower-related inflows to avoid rapid credit growth and associated financial stability risks.\n- Preserve effective monetary policy transmission mechanisms given past disruptions from rupee shortages.\n\nBhutan: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Bhutan\n\n---\n\n Content in this bundle\n\n- Cr16206\n  - Cr16206 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Cr16206 (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: June 30, 2016",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781475567342.002",
    "Economic growth slowed in the wake of the rupee shortage but has picked up more recently.",
    "From an average of about 8 percent during the Ninth and Tenth Five-Year Plans spanning fiscal years (FYs) 2003/04–2012/13, real GDP growth fell below 4 percent in FY2012/13 and FY2013/14.",
    "Hydropower sector developments are central to recent performance and short-term dynamics.",
    "Bhutan’s medium-term outlook is characterized as favorable.",
    "Commissioning of new hydropower generation projects will boost:",
    "Domestic risks highlighted:",
    "External vulnerability is linked to rupee shortages and fluctuations in hydropower-related inflows.",
    "Manage high public and publicly-guaranteed external debt to reduce vulnerability to external pressure.",
    "Monitor and manage hydropower-related inflows to avoid rapid credit growth and associated financial stability risks.",
    "Preserve effective monetary policy transmission mechanisms given past disruptions from rupee shortages.",
    "**Cr16206**"
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