Bahrain Economy Profile 2008

Economy - overview

With its highly developed communication and transport facilities, Bahrain is home to numerous multinational firms with business in the Gulf. Petroleum production and refining account for over 60% of Bahrain's export receipts, over 70% of government revenues, and 11% of GDP (exclusive of allied industries), underpinning Bahrain's strong economic growth in recent years. Aluminum is Bahrain's second major export after oil. Other major segments of Bahrain's economy are the financial and construction sectors. Bahrain is focused on Islamic banking and is competing on an international scale with Malaysia as a worldwide banking center. Bahrain is actively pursuing the diversification and privatization of its economy to reduce the country's dependence on oil. As part of this effort, in August 2006 Bahrain and the US implemented a Free Trade Agreement (FTA), the first FTA between the US and a Gulf state. Continued strong growth hinges on Bahrain's ability to acquire new natural gas supplies as feedstock to support its expanding petrochemical and aluminum industries. Unemployment, especially among the young, and the depletion of oil and underground water resources are long-term economic problems.

GDP (purchasing power parity)

$24.61 billion (2007 est.)

GDP (official exchange rate)

$16.89 billion (2007 est.)

GDP - real growth rate

6.6% (2007 est.)

GDP - per capita (PPP)

$34,700 (2007 est.)

GDP - composition by sector

agriculture: 0.3%
industry: 43.6%
services: 56% (2007 est.)

Population below poverty line

NA%

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices)

3.5% (2007 est.)

Investment (gross fixed)

17.6% of GDP (2007 est.)

Labor force

363,000
note: 44% of the population in the 15-64 age group is non-national (2007 est.)

Labor force - by occupation

agriculture: 1%
industry: 79%
services: 20% (1997 est.)

Unemployment rate

15% (2005 est.)

Budget

revenues: $6.048 billion
expenditures: $5.082 billion (2007 est.)

Public debt

28.2% of GDP (2007 est.)

Industries

petroleum processing and refining, aluminum smelting, iron pelletization, fertilizers, Islamic and offshore banking, insurance, ship repairing, tourism

Industrial production growth rate

5.5% (2007 est.)

Electricity - production

8.187 billion kWh (2005)

Electricity - consumption

7.614 billion kWh (2005)

Electricity - exports

0 kWh (2005)

Electricity - imports

0 kWh (2005)

Oil - production

184,000 bbl/day (2007 est.)

Oil - consumption

31,000 bbl/day (2005 est.)

Oil - imports

216,300 bbl/day (2004)

Oil - exports

235,500 bbl/day (2004)

Oil - proved reserves

124.6 million bbl (1 January 2006 est.)

Natural gas - production

10.27 billion cu m (2005 est.)

Natural gas - consumption

10.27 billion cu m (2005 est.)

Natural gas - exports

0 cu m (2005 est.)

Natural gas - imports

0 cu m (2005)

Natural gas - proved reserves

88.26 billion cu m (1 January 2006 est.)

Current Account Balance

$2.009 billion (2007 est.)

Agriculture - products

fruit, vegetables; poultry, dairy products; shrimp, fish

Exports

$13.16 billion (2007 est.)

Exports - commodities

petroleum and petroleum products, aluminum, textiles

Exports - partners

Saudi Arabia 3.2%, US 3%, Japan 2.3%
note: data exclude oil exports (2006)

Imports

$9.784 billion (2007 est.)

Imports - commodities

crude oil, machinery, chemicals

Imports - partners

Saudi Arabia 37.2%, Japan 6.8%, US 6.2%, UK 6.1%, Germany 6%, UAE 4.2% (2006)

Reserves of foreign exchange and gold

$3.474 billion (31 December 2007 est.)

Debt - external

$7.692 billion (31 December 2007 est.)

Stock of direct foreign investment - at home

$11.55 billion (2006 est.)

Stock of direct foreign investment - abroad

$6.039 billion (2006 est.)

Market value of publicly traded shares

$21.12 billion (2006)

Economic aid - recipient

$103.9 million (2004)

Currency (code)

Bahraini dinar (BHD)

Exchange rates

Bahraini dinars per US dollar - 0.376 (2007), 0.376 (2006), 0.376 (2005), 0.376 (2004), 0.376 (2003)

Fiscal year

calendar year