Commodities - Bhutan

Bhutan

The nominal value in the Commodities market is projected to reach US$4,130.00m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.82% resulting in a projected total amount of US$5,227.00m by 2029.
The average price per contract in the Commodities market amounts to US$0.01 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$53,690.00bn in 2024).
In the Commodities market, the number of contracts is expected to amount to 315.10k by 2029.

Market

Region

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Analyst Opinion

The Commodities market in Bhutan is witnessing a shift in customer preferences towards more diverse investment options.

Customer preferences: Investors in Bhutan are increasingly looking for alternative investment opportunities beyond traditional avenues. This shift is driven by a growing appetite for risk diversification and potential higher returns offered by commodities trading. As investors seek to balance their portfolios and explore new ways to generate income, the Commodities market is becoming an attractive option.

Trends in the market: In Bhutan, the Commodities market is experiencing a trend towards increased participation from retail investors. This can be attributed to the accessibility of online trading platforms and the availability of educational resources that empower individuals to engage in commodity trading. Moreover, the market is witnessing a rise in demand for commodities such as precious metals and energy products, reflecting global trends and geopolitical developments that influence commodity prices.

Local special circumstances: Bhutan's unique position as a landlocked country with limited natural resources shapes the dynamics of its Commodities market. The country's reliance on imports for essential commodities underscores the importance of efficient price discovery and risk management mechanisms in the market. Additionally, Bhutan's commitment to sustainable development and environmental conservation may influence investor sentiment towards commodities that align with ethical and green investment principles.

Underlying macroeconomic factors: The development of Bhutan's Commodities market is also influenced by broader macroeconomic factors such as currency exchange rates, inflation, and government policies. Fluctuations in the Bhutanese Ngultrum against major currencies can impact the prices of imported commodities, affecting trading strategies and investor decisions. Furthermore, regulatory initiatives aimed at enhancing market transparency and investor protection play a crucial role in shaping the growth trajectory of the Commodities market in Bhutan.

Methodology

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.