Bhutan continues to witness a positive trend in remittances from its citizens living abroad (BLA), with 2025 recording significant growth compared to previous years. These financial inflows play a critical role in supporting families back home and underpinning the country’s broader economic stability.
Recent figures show that Australia remains the top source of remittances for Bhutanese workers. In the first eight months of 2025, remittance flows from Australia displayed an upward trajectory, rising from USD 11.8 million in January to a peak of USD 22.9 million in May. Even with a modest decline in July and August to USD 20.7 million and USD 19.8 million, these figures remain substantially higher than the same period in 2024, when remittances from Australia ranged between USD 8.4 million and USD 13.3 million.
The United States also continues to be a reliable source of remittance inflows. Monthly contributions from the US rose gradually from USD 1.7 million in January and February to USD 2.6 million in August. While these figures reflect steady growth rather than dramatic surges, they underscore the stability of employment opportunities for Bhutanese workers in the US and the consistent support they provide to families back home.
Kuwait has emerged as another notable contributor, with August remittances jumping to USD 2.6 million from USD 1.4 million in the same month of 2024. Canada and the United Kingdom also recorded steady increases, while Qatar, the UAE, Singapore, Cyprus, and the Philippines continued to provide modest but consistent flows. Collectively, these diverse sources highlight the growing significance of Bhutanese migrant workers as a key economic pillar.
While Australia accounts for the largest total volume of remittances to Bhutan, analysts caution that this does not necessarily translate into the highest per capita remittance. The reason lies in the composition of the Bhutanese diaspora: Australia hosts a relatively large number of Bhutanese workers, particularly in sectors such as healthcare, hospitality, and agriculture. The high aggregate remittance figures are therefore partly a reflection of the sheer number of senders, rather than each individual sending substantially more money than peers in other countries.
In contrast, countries with smaller Bhutanese populations—such as Kuwait, Canada, or the United States—may exhibit higher per capita remittance amounts. For example, a single worker in Kuwait or the Middle East often earns higher wages or sends a larger share of income home due to concentrated employment in specific sectors like construction, domestic work, or professional services. Similarly, Bhutanese professionals in the United States or Canada, though fewer in number, may remit proportionally larger sums due to higher earnings.
Experts say that this distinction between total remittance volume and per capita contribution is important for policymakers and economists analyzing the economic impact of migrant workers. While aggregate flows indicate the overall financial support coming into Bhutan, per capita metrics reveal the intensity of contribution and the relative economic capacity of Bhutanese workers in different host countries. Understanding both dimensions allows the RMA and development planners to better assess the reliability of remittance inflows, identify trends in income distribution among the diaspora, and tailor financial products or support programs accordingly.
Moreover, the per capita perspective highlights potential avenues for boosting remittance efficiency. If smaller Bhutanese communities with higher individual contributions could be better supported—through lower transfer fees, digital remittance channels, or financial literacy programs—Bhutan could optimize the inflows even further, enhancing both household welfare and national foreign exchange reserves.
Economists examining the latest remittance data suggest that the sustained upward trajectory of financial inflows to Bhutan is being driven by a combination of structural and behavioral factors. Improved employment opportunities for Bhutanese workers abroad, particularly in countries such as Australia, the United States, and Kuwait, have allowed them to earn higher wages and, in turn, remit larger amounts back home. Coupled with this is greater economic stability in host countries, which reduces the risk of wage disruptions or job losses, giving workers the confidence to maintain or increase their financial support to families in Bhutan. Analysts also point to a cultural and social factor: Bhutanese migrant workers are increasingly aware of the critical role their remittances play in sustaining household welfare, funding education, health care, and small-scale entrepreneurial ventures, and this awareness has led to more deliberate and consistent remittance practices.
In 2025, total remittance inflows have consistently surpassed levels recorded over the previous two years. Peak monthly inflows have reached approximately USD 23 million, a striking increase from early 2024 figures, which were significantly lower. This pattern suggests not only temporary gains but a broader trend of sustained growth, underpinned by improved access to formal banking channels and digital remittance mechanisms that make sending money home faster, safer, and more reliable.
The macroeconomic implications of this growth are considerable. For households, remittances provide a steady source of income, allowing families to meet consumption needs, invest in education, and improve living standards. At the national level, these inflows strengthen Bhutan’s foreign exchange reserves, reducing vulnerability in a small, import-dependent economy where trade deficits are common. By alleviating pressure on domestic liquidity, remittances also help maintain the stability of the Ngultrum, which is pegged to the Indian Rupee, and provide a buffer against external shocks, such as fluctuating commodity prices or global economic downturns.
Moreover, analysts highlight that the consistent rise in remittances reflects both the resilience and adaptability of Bhutanese migrant workers. Even amid global uncertainties, they continue to send critical financial support back home, sustaining economic activity in rural and urban areas alike. This, in turn, signals a degree of optimism for Bhutan’s future economic development. The growth in remittances can also catalyze domestic investment: increased household income may spur demand for goods and services, stimulate small-scale entrepreneurship, and potentially encourage savings that feed into domestic credit and financial markets.
Sherab Dorji
From Thimphu
