Bahrain: Economy#
Low oil prices have generated a budget deficit of at least a $4 billion deficit in 2015, 13% of GDP. Bahrain has few options for covering this deficit, with meager foreign assets and a constrained borrowing ability, stemming in part from a sovereign debt rating averaging just above "junk" status.Oil comprises 86% of Bahraini budget revenues, despite past efforts to diversify its economy and to build communication and transport facilities for multinational firms with business in the Gulf. As part of its diversification plans, Bahrain implemented a Free Trade Agreement (FTA) with the US in August 2006, the first FTA between the US and a Gulf state.
Other major economic activities are production of aluminum - Bahrain's second biggest export after oil - finance, and construction. Bahrain continues to seek new natural gas supplies as feedstock to support its expanding petrochemical and aluminum industries.
In 2011 Bahrain experienced economic setbacks as a result of domestic unrest driven by the majority Shia population, however, the economy recovered in 2012-15, partly as a result of improved tourism. In addition to addressing its current fiscal woes, Bahraini authorities face the long-term challenge of boosting Bahrain’s regional competitiveness—especially regarding industry, finance, and tourism—and reconciling revenue constraints with popular pressure to maintain generous state subsidies and a large public sector.
Economic Facts#
| GDP (purchasing power parity) | $66.37 billion (2016 est.) $65 billion (2015 est.) $63.19 billion (2014 est.) note: data are in 2016 dollars |
|---|---|
| GDP (official exchange rate) | $31.82 billion (2015 est.) |
| GDP - real growth rate | 2.1% (2016 est.) 2.9% (2015 est.) 4.4% (2014 est.) |
| GDP - per capita (PPP) | $50,300 (2016 est.) $50,200 (2015 est.) $49,800 (2014 est.) note: data are in 2016 dollars |
| Gross national saving | 20% of GDP (2016 est.) 20.6% of GDP (2015 est.) 32% of GDP (2014 est.) |
| GDP - composition, by end use | household consumption: 48.5% government consumption: 16.6% investment in fixed capital: 18.7% investment in inventories: 1.2% exports of goods and services: 47.1% imports of goods and services: -32.1% (2016 est.) |
| GDP - composition, by sector of origin | agriculture: 0.3% industry: 33.8% services: 65.9% (2016 est.) |
| Agriculture - products | fruit, vegetables; poultry, dairy products; shrimp, fish |
| Industries | petroleum processing and refining, aluminum smelting, iron pelletization, fertilizers, Islamic and offshore banking, insurance, ship repairing, tourism |
| Industrial production growth rate | 1.6% (2016 est.) |
| Labor force | 809,700 note: excludes unemployed; 44% of the population in the 15-64 age group is non-national (2016 est.) |
| Labor force - by occupation | agriculture: 1% industry: 32% services: 67% (2004 est.) |
| Unemployment rate | 4.1% (2014 est.) 4.3% (2013 est.) note: official estimate; actual rate is higher |
| Population below poverty line | NA% |
| Household income or consumption by percentage share | lowest 10%: NA% highest 10%: NA% |
| Budget | revenues: $4.37 billion expenditures: $8.781 billion (2016 est.) |
| Taxes and other revenues | 13.7% of GDP (2016 est.) |
| Budget surplus (+) or deficit (-) | -13.9% of GDP (2016 est.) |
| Public debt | 72% of GDP (2016 est.) 58.7% of GDP (2015 est.) |
| Fiscal year | calendar year |
| Inflation rate (consumer prices) | 3.5% (2016 est.) 1.8% (2015 est.) |
| Commercial bank prime lending rate | 5.4% (31 December 2016 est.) 5.16% (31 December 2015 est.) |
| Stock of narrow money | $8.971 billion (31 December 2016 est.) $8.762 billion (31 December 2015 est.) |
| Stock of broad money | $27.03 billion (31 December 2016 est.) $26.71 billion (31 December 2015 est.) |
| Stock of domestic credit | $29.28 billion (31 December 2016 est.) $28.29 billion (31 December 2015 est.) |
| Market value of publicly traded shares | $19.25 billion (31 December 2015 est.) $22.07 billion (31 December 2014 est.) $18.57 billion (31 December 2013 est.) |
| Current account balance | -$1.499 billion (2016 est.) -$965 million (2015 est.) |
| Exports | $12.09 billion (2016 est.) $14.2 billion (2015 est.) |
| Exports - commodities | petroleum and petroleum products, aluminum, textiles |
| Exports - partners | Saudi Arabia 3.6%, UAE 2.4%, US 2.2% (2015) |
| Imports | $7.974 billion (2016 est.) $8.848 billion (2015 est.) |
| Imports - commodities | crude oil, machinery, chemicals |
| Imports - partners | Saudi Arabia 29.1%, US 9.5%, China 7.6%, Japan 6.6%, Australia 5.1%, India 4.9% (2015) |
| Reserves of foreign exchange and gold | $3.26 billion (31 December 2016 est.) $4.657 billion (31 December 2015 est.) |
| Debt - external | $21.16 billion (31 December 2016 est.) $19.74 billion (31 December 2015 est.) |
| Stock of direct foreign investment - at home | $18.32 billion (31 December 2016 est.) $17.31 billion (31 December 2015 est.) |
| Stock of direct foreign investment - abroad | $11.63 billion (31 December 2016 est.) $11.22 billion (31 December 2015 est.) |
| Exchange rates | Bahraini dinars (BHD) per US dollar - 0.376 (2016 est.) 0.376 (2015 est.) 0.376 (2014 est.) 0.376 (2013 est.) 0.376 (2012 est.) |