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. The global financial crisis is likely to result in slower economic growth for Bahrain during 2009 as tight international credit and a slowing global economy cause funding for many non-oil projects to dry up. Lower oil prices may also cause Bahrain's budget to slip back into deficit.
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
6.3% (2008 est.)country comparison to the world: 35
Labor Force
557,000country comparison to the world: 152 note: 44% of the population in the 15-64 age group is non-national (2008 est.)
Electricity production
10.25 billion kWh (2007 est.)country comparison to the world: 90
Electricity Consumption
10.1 billion kWh (2007 est.)country comparison to the world: 84
Electricity Exports
0 kWh (2008 est.)
Electricity Imports
0 kWh (2008 est.)
Unemployment Rate
15% (2005 est.)country comparison to the world: 153
Population Below Poverty Line
NA%
Household Income or Consumption by Percentage Share
Lowest 10%: NA%
Highest 10%: NA%
Budget
Revenues: $6.934 billion
Expenditures: $5.612 billion (2008 est.)
Public Debt
28.7% of GDP (2008 est.)country comparison to the world: 75 63.8% of GDP (2004 est.)
Commercial Bank Prime Lending Rate
Stock of Domestic Credit
$NA (31 December 2008)$10.32 billion (31 December 2007)
Market Value of Publicly Traded Shares
$21.18 billion (31 December 2008)country comparison to the world: 65 $28.13 billion (31 December 2007)$21.12 billion (31 December 2006)
Reserves of Foreign Exchange and Gold
$3.803 billion (31 December 2008 est.)country comparison to the world: 88 $4.101 billion (31 December 2007 est.)
Debt External
$10.33 billion (31 December 2008 est.)country comparison to the world: 86 $7.858 billion (31 December 2007 est.)
Stock of Direct Foreign Investment at Home
$15.01 billion (31 December 2008 est.)country comparison to the world: 71 $13.31 billion (31 December 2007 est.)
Stock of Direct Foreign Investment Abroad
$9.34 billion (31 December 2008 est.)country comparison to the world: 47 $7.72 billion (31 December 2007 est.)
Exchange Rates
Bahraini dinars (BHD) per US dollar - 0.376 (2008 est.), 0.376 (2007), 0.376 (2006), 0.376 (2005), 0.376 (2004)
