Bahrain maintained an expansionary fiscal stance since 2009 resulting in general government deficits. Taimur khan senior analyst please refer to the important notice at the end of this report. Bahrain economy, politics and gdp growth summary the. The pandemic and the collapse in oil prices are pushing down prices for most services in bahrain s already weak economy. The yoy growth rate during the first three quarters of 2017 taken together was, similarly, 3. Bahrain has embarked on a reworking of its subsidy framework in a bid to ease the budgetary pressures associated with the fall in oil prices. Bahrain economy gdp, inflation, cpi and interest rate. Built upon the principles of sustainability, transparency, justice and competitiveness, the government.
However, the situation worsened in 2016 with a decline in oil revenues by 10 percent and an overall fiscal deficit estimated at percent of. Indeed, large external and public deficits force the government to implement fiscal austerity measures, which then weigh on private consumption. Bahrain global economic prospects examines trends for the world economy and how they affect developing countries. Country report 2017 includes bahrain real gross domestic product growth rate, with latest forecasts and historical data, gdp per capita, gdp composition and breakdown by sector. Although economic activity has recently started to show some stability, it is not expected to record high growth rates as previously. Growth will pick up in 202124, owing to stronger global demand. In the last few years lower world energy prices have generated sizable budget deficits. Together these collapsed the old pearling culture, which had developed over millennia and provided prosperity, social cohesion and identity. Before the development of the oil industry, date palm cultivation dominated bahrains agriculture, producing sufficient dates for both domestic consumption and. According to the cia world factbook, bahrain ranks 63rd in oil production globally est. It highlights how oecd countries and partner economies are taking advantage of information and communication technologies icts and the internet to meet their public policy objectives. Total us merchandise imports from china reached usd505bn in 2017. Real gdp growth projections have been revised down to 1. Its name is from the arabic term albahrayn, meaning two seas.
Since the late 20th century, bahrain has heavily invested in the banking and tourism sectors. Page 5 of 39 investigation as well as a number of other traderelated initiatives. The economy of bahrain is heavily dependent upon oil and gas. Before the development of the oil industry, date palm cultivation dominated bahrain s agriculture, producing sufficient dates for both domestic consumption and export. Oil comprises 85% of bahraini budget revenues, despite past efforts to diversify its economy, build communication and transport facilities for multinational firms with business in the gulf, and expand infrastructure development.
The economy remains under strain as it enters the second quarter, as measures introduced in q1 to contain the spread of coronavirus, including international travel restrictions and the banning of gatherings of over five people, continue to suppress activity. This page has economic forecasts for bahrain including a longterm outlook for the next decades, plus mediumterm expectations for the next four quarters and shortterm market predictions for the next release affecting the bahrain economy. Subject to management approval, the findings of the mission will be presented to the executive board for consideration in june 2017. Conversely, for unemployment and inflation, a lower rank closer to 0% indicates a stronger economy. However, the situation worsened in 2016 with a decline in oil revenues by 10 percent and an overall fiscal deficit estimated at percent of gdp up from. The biennial oecd digital economy outlook examines and documents evolutions and emerging opportunities and challenges in the digital economy. The economy will contract sharply in 2020 and bahrain will struggle financially owing to the impact of covid19 on global demand and slumping oil prices. The kingdom of bahrain has thrived as one of the gulfs financial centres for decades. Bahrains economy has shown steady growth during in recent years despite the financial meltdown in 20082009.
Bahrain overview 2017 bahrain is ranked as the 63th easiest country in the world for ease of doing business in 2017 out of a total of 190 countries, up from 66 in 2016. Total us merchandise imports from china reached usd505bn. In the last few years lower world energy prices have generated sizable budget deficits about 10% of gdp in 2017 alone. The world bank there are many factors which have resulted in recent corporate decisions to locate in bahrain, a strategically located hub with direct access to saudi arabia the regions largest economy.
Despite increasing competition from emerging financial centres in the region, its advanced regulatory framework, educated workforce and relatively lowcost environment means that it remains an attractive platform for companies engaging with the wider gcc and beyond. The growth momentum has slowed, following the drop in oil prices. Confidence in the countrys economy among adults in bahrain 2017. In the early 1930s, bahrain had to recalibrate its economy to account for both the discovery of oil and the arrival, from japan, of the cultured pearl. Business environment rankings 2017 doing business out of 190 uae qatar bahrain saudi oman kuwait jordan pal. Despite the scant rainfall and poor soil, agriculture historically was an important sector of the economy. Global economic prospects examines trends for the world economy and how they affect developing countries. Main indicators, 2017, 2018, 2019 e, 2020 e, 2021 e. For exports, fdi and gdp measures, a higher rank closer to 100% indicates a stronger economy.
Located in one of the worlds chief oilproducing regions, bahrain itself. Bahrain has implemented measures that aim to increase the sectors current contribution to the gdp to reach 7% by year 2018, in an aim to. Eeccoonnoommiicc rreeppoorrtt central bank of bahrain. Pages in category economy of bahrain the following 7 pages are in this category, out of 7 total. Bahrains selected success stories figure 2 ease of doing business. Bahrains economic outlook spring 2016 the latest mena economic monitor report spring 2016, expects bahrains growth to be at 2. Doing business 2017 is the 14th in a series of annual reports investigating the regulations that enhance business activity and those that constrain it.
During 2010, the global economy underwent a recovery as world output and financial markets rebounded. However, its impact is much narrower compared to other gulf countries due to the relatively diverse nature of the bahraini economy. The bahraini currency is the secondhighestvalued currency unit in the world. Conversely, for unemployment and inflation, a lower rank closer to 0% indicates a. Despite the governments past efforts to diversify the economy, oil still comprises 85% of bahraini budget revenues. Despite efforts to diversify the economy, according to the cia world fact book. Bahrain is a regional financial and trading hub with a liberal business environment. Economic indicators for bahrain including actual values, historical data charts, an economic calendar, timeseries statistics, business news, long term forecasts and shortterm predictions for bahrain economy. Bahrain economic quarterly june 2018 please refer to the disclaimer at the end of the ocument. The report includes countryspecific threeyear forecasts for major macroeconomic indicators, including commodity and financial markets.
However, project spending is foreseen to increase thanks. Apr 10, 2017 an international monetary fund imf mission led by ms. Bahrain inflation the economy remains under strain as it enters the second quarter, as measures introduced in q1 to contain the spread of coronavirus, including international travel restrictions and the banning of gatherings of over five people, continue to suppress activity. Bahrain market overviewbahrain market overview discusses key economic indicators and trade statistics, which countries are dominant in the market, the u. Bahrains economy is closely linked to the fluctuation in global crude oil prices as.
Bahrains economy continued to be negatively affected by the lower hydrocarbon prices. Even the smallest gulf economy is too big to fail bloomberg. Bahrain s economy is closely linked to the fluctuation in global crude oil prices as the rest of the region. Economic growth is expected to moderate over the forecast period. Bahrain sustained an expan sionary fiscal stance in 2017, resulting in a doubledigit deficit. Bahrain has long attracted global occupiers looking to setup a base.
The yoy growth rate during the first three quarters of 2017 taken. With lower oil prices in the aftermath of 2014, bahrains economic imbalances have widened. Browse additional economic indicators and data sets, selected by global finance editors, to learn more about bahrain economic outlook, debt to gdp ratio. Pdf economic diversification in bahrain researchgate. Bahrain economic quarterly invest in bahrains economy. When civil war broke out in lebanon in 1975, bahrain attracted some of the financial business fleeing that country, helped, in part, by a spectacular boom in bank lending to the regions petroleum exporters in the late 1970s and early 1980s, by the countrys proximity to the historically closed economy of saudi arabia, and by its own relatively. It never reached the levels of production enjoyed by kuwait or saudi arabia. Bahrain economic quarterly q1 2019 ministry of finance and. Egypt lebanon iraq libya gcc regional 21 83 66 92 71 96 103 114 128 3 168 185 105 71. For more information about bahrain economy, view the bahrain economic.
For example, bahrains exports rank is higher than please wait. Nov 12, 2018 bahrain which name means two seas was one of the first states in the gulf to discover oil and to build a refinery. Real gdp growth rates among the gcc economies are estimated to have varied in the range of. Bahrain gdp and economic data global finance magazine. Oil and natural gas play a dominant role in bahrains economy. Imf staff completes 2017 article iv mission to bahrain.
Mar 02, 2020 confidence in the countrys economy among adults in bahrain 2017. Padamja khandelwal visited manama from march 1223, 2017 for discussions on the 2017 article iv consultation. The economic context of bahrain economic and political overview. The projections for 2011 and 2012 show that the world economy will continue to grow, albeit more modestly, with growth rates of 4. Bahrains economy is closely linked to the fluctuation in global crude oil prices as the rest of the region. Bahrain has by far the smallest economy of any member of the gulf cooperation council gcc, largely as a result of the small size of both its population and its proven oil reserves estimated at 46,430 barrels per day.
Economies are ranked on their ease of doing business. Data for the first quarter of 2017 indicates a slight up tick in growth especially in the nonoil sector growing 4. The economic context of bahrain economic and political. The countrys capital, manama is home to many large financial structures. An international monetary fund imf mission led by ms. The vote emphasises the worsening of bahrains fiscal crisis, with the likelihood of a further gcc bailout rising. The opening months of 2017 have witnessed a general strengthening of the global economic outlook. Bahrain, small arab state situated in a bay on the southwestern coast of the persian gulf. Bahrain which name means two seas was one of the first states in the gulf to discover oil and to build a refinery.1495 1098 1032 483 1049 770 512 845 156 1093 486 641 551 478 231 624 868 1403 1329 843 1100 1261 270 619 613 1258 1009 221 453 519 628