National Debt (% of GDP): Bhutan

Analysis# Bhutan National Debt (% of GDP) Bhutan's national debt stood at 121.1% of GDP in 2026, reflecting elevated fiscal obligations relative to economic output. The country's debt burden has surged dramatically since 1993, when it measured just 33% of GDP—a total increase of 101.2 percentage points over three decades. While current levels remain below the all-time peak of 124.5% in 2021, they signal persistent structural challenges in Bhutan's public finances. The past decade reveals a sharp inflection point around 2020–2021, when debt spiked from 100.8% to 124.5%, likely driven by pandemic-related spending and infrastructure investments. Since that peak, debt has declined through 2024 (110.4%) but reversed sharply in 2026, climbing back to 121.1%. This volatility suggests Bhutan continues balancing significant development needs against fiscal constraints, with no clear downward trajectory emerging.