Overview: The oil price decline in recent years has had an adverse impact on the economy. Petroleum production and processing account for about 85% of export receipts, 60% of government revenues, and 20% of GDP. In 1986 soft oil-market conditions led to a 5% drop in GDP, in sharp contrast to the 5% average annual growth rate during the early 1980s. The slowdown in economic activity, however, has helped to check the inflation of the 1970s. The government's past economic diversification efforts has moderated the severity of the downturn, but failed to offset oil and gas revenue losses.

GDP: $3.5 billion, per capita $7,550 (1987); real growth rate 0% (1988)

Inflation rate (consumer prices): - 1.0% (1988 est.)

Unemployment: 3.2% (1987)

Budget: revenues $1,136 million; expenditures $1,210 million, including capital expenditures of $294 million (1987)

Exports: $2.4 billion (f.o.b., 1988 est.); @m5commodities--petroleum 80%, aluminum 7%, other 13%; @m5partners--US, UAE, Japan, Singapore, Saudi Arabia

Imports: $2.5 billion (f.o.b., 1988 est.); @m5commodities--nonoil 59%, crude oil 41%; @m5partners--UK, Saudi Arabia, US, Japan

External debt: $1.5 billion (December 1988)

Industrial production: growth rate - 3.1% (1987)

Electricity: 1,552,000 kW capacity; 5,438 million kWh produced, 10,950 kWh per capita (1988)

Industries: petroleum processing and refining, aluminum smelting, offshore banking, ship repairing

Agriculture: accounts for less than 2% of GDP (including fishing); heavily subsidized sector produces fruit, vegetables, poultry, dairy products, shrimp, and fish; not self-sufficient in food production; fish catch 9,000 metric tons in 1987

Aid: NA

Currency: Bahraini dinar (plural--dinars); 1 Bahraini dinar (BD) = 1,000 fils

Exchange rates: Bahraini dinars (BD) per US$1--0.3760 (fixed rate)

Fiscal year: calendar year

NOTE: The information regarding Bahrain on this page is re-published from the 1989 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Bahrain Economy 1989 information contained here. All suggestions for corrections of any errors about Bahrain Economy 1989 should be addressed to the CIA.