Economy - overview:
Oil and natural gas play a dominant role in Bahrain’s economy. Despite the Government’s past efforts to diversify the economy, oil still comprises 85% of Bahraini budget revenues. In the last few years lower world energy prices have generated sizable budget deficits - about 10% of GDP in 2017 alone. Bahrain has few options for covering these deficits, with low foreign assets and fewer oil resources compared to its GCC neighbors. The three major US credit agencies downgraded Bahrain’s sovereign debt rating to "junk" status in 2016, citing persistently low oil prices and the government’s high debt levels. Nevertheless, Bahrain was able to raise about $4 billion by issuing foreign currency denominated debt in 2017.

Other major economic activities are production of aluminum - Bahrain's second biggest export after oil and gas –finance, and construction. Bahrain continues to seek new natural gas supplies as feedstock to support its expanding petrochemical and aluminum industries. In April 2018 Bahrain announced it had found a significant oil field off the country’s west coast, but is still assessing how much of the oil can be extracted profitably.

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. Since 2015, the government lifted subsidies on meat, diesel, kerosene, and gasoline and has begun to phase in higher prices for electricity and water. 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. It plans to introduce a Value Added Tax (VAT) by the end of 2018.

GDP (purchasing power parity):
$71.17 billion (2017 est.)
$68.59 billion (2016 est.)
$66.3 billion (2015 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 100
[see also: GDP country ranks ]

GDP (official exchange rate):
$35.33 billion (2017 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
3.8% (2017 est.)
3.5% (2016 est.)
2.9% (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 86
[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):
$49,000 (2017 est.)
$48,200 (2016 est.)
$48,400 (2015 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 33
[see also: GDP - per capita country ranks ]

Gross national saving:
19.8% of GDP (2017 est.)
21.2% of GDP (2016 est.)
22% of GDP (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 99
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 45.8% (2017 est.)
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 15.5% (2017 est.)
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 26.1% (2017 est.)
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 0.4% (2017 est.)
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 80.2% (2017 est.)
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -67.9% (2017 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 0.3% (2017 est.)
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 39.3% (2017 est.)
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 60.4% (2017 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

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:
0.6% (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 165
[see also: Industrial production growth rate country ranks ]

Labor force:
831,600 (2017 est.)
note: excludes unemployed; 44% of the population in the 15-64 age group is non-national
country comparison to the world (CIA rank, may be based on non-current data): 149
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 1%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 32%
[see also: Labor force - by occupation - industry country ranks ]
services: 67% (2004 est.)
[see also: Labor force - by occupation - services country ranks ]

Unemployment rate:
3.6% (2017 est.)
3.7% (2016 est.)
note: official estimate; actual rate is higher
country comparison to the world (CIA rank, may be based on non-current data): 43
[see also: Unemployment rate country ranks ]

Population below poverty line:
NA
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: NA
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: NA
[see also: Household income or consumption by percentage share - highest 10% country ranks ]

Budget:
revenues: 5.854 billion (2017 est.)
[see also: Budget - revenues country ranks ]
expenditures: 9.407 billion (2017 est.)
[see also: Budget - expenditures country ranks ]

Taxes and other revenues:
16.6% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 176
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-10.1% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 211
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
88.5% of GDP (2017 est.)
81.4% of GDP (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 26
[see also: Public debt country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
1.4% (2017 est.)
2.8% (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 76
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
1.75% (18 December 2017)
0.5% (31 December 2010)
country comparison to the world (CIA rank, may be based on non-current data): 121
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
5.33% (31 December 2017 est.)
5.18% (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 139
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$9.185 billion (31 December 2017 est.)
$9.078 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 84
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$9.185 billion (31 December 2017 est.)
$9.078 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 86
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$29.72 billion (31 December 2017 est.)
$29.08 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 80
[see also: Stock of domestic credit country ranks ]

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.)
country comparison to the world (CIA rank, may be based on non-current data): 64
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
-$1.6 billion (2017 est.)
-$1.493 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 159
[see also: Current account balance country ranks ]

Exports:
$15.38 billion (2017 est.)
$12.78 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 75
[see also: Exports country ranks ]

Exports - partners:
UAE 19.6%, Saudi Arabia 11.7%, US 10.8%, Oman 8.1%, China 6.5%, Qatar 5.7%, Japan 4.2% (2017)

Exports - commodities:
petroleum and petroleum products, aluminum, textiles

Imports:
$16.08 billion (2017 est.)
$13.59 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 84
[see also: Imports country ranks ]

Imports - commodities:
crude oil, machinery, chemicals

Imports - partners:
China 8.8%, UAE 7.2%, US 7.1%, Australia 5.3%, Japan 4.8% (2017)

Reserves of foreign exchange and gold:
$2.349 billion (31 December 2017 est.)
$3.094 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 118
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$52.15 billion (31 December 2017 est.)
$42.55 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 63
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$22.08 billion (31 December 2017 est.)
$21.56 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 76
[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad:
$10.66 billion (31 December 2017 est.)
$10.5 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 65
[see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates:
Bahraini dinars (BHD) per US dollar -
0.376 (2017 est.)
0.376 (2016 est.)
0.376 (2015 est.)
0.376 (2014 est.)
0.376 (2013 est.)