Bhutan diary | Are the hydropower projects too hot to handle?

Some economists believe national economy has been heated up beyond its carrying capacity

Follow up:

Rupee Crunch: The government’s future social programmes could suffer, because the worst is yet to come, regarding rupee reserve management and trade deficits, some experts and local economists believe.

This is largely based on the premise that investments in the hydropower sector are too much, and happening too fast, considering the size of the Bhutanese economy.

Bhutan’s GDP stands at Nu 72B, and the overall size of the projects under the 10,000 megawatt (MW) initiative is estimated at Nu 450B over the next eight years. “The investment is expanding to a size, which would be difficult to absorb for the economy,” an economist said. “It’s biting off more than can be chewed.”

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