In 2023, Bhutan reached a notable milestone by rising to 125th place out of 193 countries in the Global Human Development Index (HDI), as reported by the United Nations Development Programme (UNDP). This represents an improvement from its 126th position in 2022. The UNDP's Human Development Report 2025, titled “A Matter of Choice: People and Possibilities in the Age of AI,” released yesterday, categorizes Bhutan among the Medium Human Development countries, where it surpassed 43 other nations.
Bhutan's Human Development Index (HDI) score is currently 0.698, only 0.002 points away from entering the High Human Development category. Between 2010 and 2023, the country experienced an average annual growth rate of 1.26 percent in its HDI. Prime Minister Tshering Tobgay reminisced about Bhutan's status in 2005, noting, “At that time, our Global Human Development Index was merely 0.52. Today, we rank 125th out of 193 countries.”
During a presentation of the findings, UNDP Bhutan official Tshering Choden emphasized Bhutan's steady performance since 2018. “Bhutan has consistently surpassed the South Asia average in HDI, demonstrating significant advancements in health, education, and income,” she stated.
In 2023, Bhutan's life expectancy at birth was 73.0 years. The expected years of schooling reached 13.2, while the average years of schooling were 5.8. The gross national income (GNI) per capita was estimated at USD 13,843.
Despite these positive indicators, inequality poses a significant challenge. Bhutan's Inequality-adjusted Human Development Index (HDI) was 0.478, reflecting a 31.5 percent loss in potential development due to inequality. The overall human inequality coefficient was 30 percent.
The report highlighted a 13.1 percent inequality in life expectancy, resulting in an adjusted life expectancy index of 0.708. Educational inequality was measured at 48.2 percent, leading to an adjusted education index of 0.290. Income inequality stood at 28.6 percent, which brought the adjusted income index to 0.532.
Regarding gender development, Bhutan achieved a Gender Development Index (GDI) of 0.958 in 2023, ranking two positions higher than its HDI. The male HDI was 0.711, while the female HDI was 0.681.
Bhutan's Gender Inequality Index is 0.278, ranking it 71st in the world. In 2020, the country reported a maternal mortality ratio of 60 deaths per 100,000 live births. By 2023, the adolescent birth rate was 9.4 births per 1,000 women aged 15 to 19. Among individuals aged 25 and older, 65.4 percent of both men and women had completed at least some secondary education. The labor force participation rate for both genders aged 15 and older was 72.4 percent. From 2012 to 2023, 12.4 percent of the population lived below the international poverty line of USD 2.15 per day (adjusted for purchasing power parity). “Bhutan has nearly halved its Human Development Index gap with the world average between 2010 and 2023,” stated Tshering Choden. “This reflects a faster rate of progress than global trends.”
While Bhutan has made progress, the global outlook remains bleak. UNDP Resident Representative Mohammad Younus noted that human development worldwide has reached its lowest point in 35 years. “However, AI presents a potential path forward, provided we make the right decisions,” he stated.
The report identifies three key strategies for leveraging artificial intelligence (AI) to promote human advancement: creating an economy where AI enhances rather than replaces human labor, utilizing AI to foster scientific innovation, and investing in the skills and systems necessary for individuals to succeed in an AI-driven world.
On a global scale, the gap between countries with low and very high Human Development Index (HDI) scores has continued to widen for the fourth year in a row. Vulnerable nations are experiencing what the report describes as a “triple squeeze”—characterized by jobless industrialization, increasing debt, and escalating global trade tensions.
Despite the challenges, many people are hopeful. A UNDP survey reveals that one in five individuals globally is already utilizing AI. Additionally, 60 percent believe that AI will positively impact employment. In countries with low to medium Human Development Index (HDI), 70 percent anticipate that AI will enhance productivity. However, a significant educational divide remains between high- and low-HDI nations.
