Economy Overview
Bahrain has taken great strides in diversifying its economy and its 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. 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. In 2011 and 2012, Bahrain experienced economic setbacks as a result of domestic unrest, however, several factors indicate that the economy is beginning to recover, such as the return of the formula one race and tourist cruise ships to Bahrain. Economic policies aimed at restoring confidence in Bahrain's economy, such as the suspension of an expatriate labor tax and frequent bailouts of Gulf Air, will make Bahrain's foremost long-term economic challenges - youth unemployment and the growth of government debt - more difficult to address.
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
-1.7% (2012 est.)country comparison to the world: 154
Labor Force
655,300country comparison to the world: 153 note: 44% of the population in the 15-64 age group is non-national (2012 est.)
Unemployment Rate
15% (2005 est.)country comparison to the world: 143
Population Below Poverty Line
NA%
Household Income or Consumption by Percentage Share
Lowest 10%: NA%
Highest 10%: NA%
Budget
Revenues: $8.07 billion
Expenditures: $8.673 billion (2012 est.)
Public Debt
54.2% of GDP (2012 est.)country comparison to the world: 51 48% of GDP (2011 est.)
Commercial Bank Prime Lending Rate
Stock of Narrow Money
$6.944 billion (31 December 2012 est.)country comparison to the world: 89 $7.013 billion (31 December 2011 est.)
Stock of Broad Money
$24.38 billion (31 December 2012 est.)country comparison to the world: 81 $21.64 billion (31 December 2011 est.)
Stock of Domestic Credit
$22.19 billion (31 December 2012 est.)country comparison to the world: 75 $20.78 billion (31 December 2011 est.)
Market Value of Publicly Traded Shares
$17.15 billion (31 December 2011)country comparison to the world: 63 $20.43 billion (31 December 2010) $16.93 billion (31 December 2009)
Reserves of Foreign Exchange and Gold
$5.211 billion (31 December 2012 est.)country comparison to the world: 91 $4.551 billion (31 December 2011 est.)
Debt External
$27.54 billion (31 December 2012 est.)country comparison to the world: 73 $27.04 billion (31 December 2011 est.)
Stock of Direct Foreign Investment at Home
$16.83 billion (31 December 2012 est.)country comparison to the world: 78 $15.93 billion (31 December 2011 est.)
Stock of Direct Foreign Investment Abroad
$9.699 billion (31 December 2012 est.)country comparison to the world: 54 $8.777 billion (31 December 2011 est.)
Exchange Rates
Bahraini dinars (BHD) per US dollar -0.38 (2012 est.) 0.38 (2011 est.) 0.38 (2010 est.) 0.38 (2009) 0.38 (2008)
