According to 2001 estimates, the population stands at 698,950 with a growth rate of 3.1% per annum. The country is still predominantly rural with approximately 85% still in the rural areas.
There are three prominent ethnic groups.
Sharchops or Easterners: Of Burmese-Mongoloid origin, they live in the eastern part of country. They are recognized as the original inhabitants of Bhutan.
Ngalops: They are descendants of Tibetan immigrants who arrived in the 9th century. They live in the western part of the country.
Lhotshampas or Southerners: They are the newest arrival in the country
having immigrated to southern part of the country in the late 19th century.
The Lhotshampas consists of several ethnic subdivisions such as the Brahman,
Chettri, Gurung, Rai, Limbu and Sherpa.