Bahrain: Economic Outline

Economic Indicators

In a region experiencing an oil boom, Bahrain has the fastest growing economy in the Arab world. Production and refining of oil account for nearly 70% of the country’s income. Moreover, Bahrain is striving to position itself as the regional center of financial, telecommunications, and transportation services. Slightly affected by the economic crisis, Bahrain experienced a 3.1% growth in 2009 and 4% in 2010, driven by the increase in oil prices, the global economic recovery and fiscal stimulus measures. The future outlook is positive.

The government of Bahrain is actively pursuing the diversification and privatization of its economy in order to reduce the country's dependence on oil. Even though the production of crude oil will slowly decrease in the future years, the economic situation in Bahrain remains healthy for the time being. As a fact, the dynamism of activities outside the hydrocarbons should remain such as the degradation of the main indicators of the Kingdom remain limited. The situation of foreign accounts should remain comfortable. The main unknown outcome depends on capital moves and the results of the global balance. Corruption at a high level, unemployment, depletion of oil and underground water resources are major long-term economic problems.

Bahrain faces a high unemployment rate, especially among young people.

Main Indicators	2009	2010	2011	2012 (e)	2013 (e)
GDP (billions USD)	19.31e	22.66	26.42	27.34	29.03
GDP (Constant Prices, Annual % Change)	3.1e	4.1	1.5e	3.6	4.8
GDP per Capita (USD)	18,589e	20,475	23,410	23,750	24,725
General Government Gross Debt (in % of GDP)	25.4e	32.0	34.2	39.1	43.7
Inflation Rate (%)	2.8	2.0e	1.0e	1.8	2.5
Current Account (billions USD)	0.56	1.11e	3.32e	3.74	4.30
Current Account (in % of GDP)	2.9	4.9	12.6	14.8	-

Source: IMF - World Economic Outlook Database - Last Available Data.

Note: (e) Estimated Data

Monetary Indicators	2008	2009	2010
Baraini Dinar (BHD) - Average Annual Exchange Rate For 1 USD	0.38	0.38	0.38

Source: World Bank - Last Available Data.

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Main Sectors of Industry

Breakdown of Economic Activity By Sector	Agriculture	Industry	Services
Employment By Sector (in % of Total Employment)	1.5	28.0	67.8
Value Added (in % of GDP)	-	-	-
Value Added (Annual % Change)	-	-	-