Economy Overview
Bahrain is one of the most diversified economies in the Persian Gulf. Highly developed communication and transport facilities make Bahrain home to numerous multinational firms with business in the Gulf. 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. Bahrain's economy, however, continues to depend heavily on oil. Petroleum production and refining account for more than 60% of Bahrain's export receipts, 70% of government revenues, and 11% of GDP (exclusive of allied industries). Other major economic activities are production of aluminum - Bahrain's second biggest export after oil - finance, and construction. Bahrain competes with Malaysia as a worldwide center for Islamic banking and continues to seek new natural gas supplies as feedstock to support its expanding petrochemical and aluminum industries. Unemployment, especially among the young, is a long-term economic problem Bahrain struggles to address. In 2009, to help lower unemployment among Bahraini nationals, Bahrain reduced sponsorship for expatriate workers, increasing the costs of employing foreign labor. The global financial crisis caused funding for many non-oil projects to dry up and resulted in slower economic growth for Bahrain. Other challenges facing Bahrain include the slow growth of government debt as a result of a large subsidy program, the financing of large government projects, and debt restructuring, such as the bailout of state-owned Gulf Air.
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
1.5% (2010 est.)country comparison to the world: 142
Labor Force
654,900country comparison to the world: 151 note: 44% of the population in the 15-64 age group is non-national (2010 est.)
Electricity production
11.22 billion kWh (2008 est.)country comparison to the world: 88
Electricity Consumption
10.48 billion kWh (2008 est.)country comparison to the world: 86
Electricity Exports
0 kWh (2009 est.)
Electricity Imports
0 kWh (2009 est.)
Unemployment Rate
15% (2005 est.)country comparison to the world: 147
Population Below Poverty Line
NA%
Household Income or Consumption by Percentage Share
Lowest 10%: NA%
Highest 10%: NA%
Budget
Revenues: $5.786 billion
Expenditures: $7.009 billion (2010 est.)
Public Debt
60.1% of GDP (2010 est.)country comparison to the world: 34 42.4% of GDP (2009 est.)
Central Bank Discount Rate
0.5% (31 December 2010 est.)country comparison to the world: 135 0.5% (31 December 2009 est.)
Commercial Bank Prime Lending Rate
Stock of Narrow Money
$6.127 billion (31 December 2010 est.)country comparison to the world: 85 $5.74 billion (31 December 2009 est.)
Stock of Broad Money
$20.92 billion (31 December 2010 est.)country comparison to the world: 82 $18.93 billion (31 December 2009 est.)
Stock of Domestic Credit
$17.26 billion (31 December 2010 est.)country comparison to the world: 85 $16.34 billion (31 December 2009 est.)
Market Value of Publicly Traded Shares
$20.43 billion (31 December 2010)country comparison to the world: 62 $16.93 billion (31 December 2009)$21.18 billion (31 December 2008)
Reserves of Foreign Exchange and Gold
$4.789 billion (31 December 2010 est.)country comparison to the world: 86 $3.54 billion (31 December 2009 est.)
Debt External
$14.58 billion (31 December 2010 est.)country comparison to the world: 81 $10.55 billion (31 December 2009 est.)
Stock of Direct Foreign Investment at Home
$15.15 billion (31 December 2010 est.)country comparison to the world: 74 $15 billion (31 December 2009 est.)
Stock of Direct Foreign Investment Abroad
$7.883 billion (31 December 2010 est.)country comparison to the world: 52 $7.549 billion (31 December 2009 est.)
Exchange Rates
Bahraini dinars (BHD) per US dollar -0.376 (2010)0.376 (2009)0.376 (2008)0.376 (2007)0.376 (2006)
