Bhutan, Thimphu – Cost of Living

The economy of Bhutan is based on agriculture, forestry, tourism and the sale of hydroelectric power to India. Agriculture provides the main livelihood for more than 80 percent of the population. Agrarian practices consist largely of subsistence farming and animal husbandry.

Thimphu is the capital and largest city of Bhutan. Thimphu became a town in 1961 and grew as the capital of Bhutan. Before 1960, Thimphu was a small settlement but was developed by the King Jigme Dorje Wangchuk to replace the ancient capital of Punakha. Rapid expansion following the pattern of rural exodus has resulted in considerable rebuilding in the city centre and mushrooming suburban development elsewhere.

Thimphu has an overall cost of living index which equates it with low cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups.

The latest cost of living rank for each of the 13 Basket Groups is now available.

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