Data at glance of Bahrain - average on period

variable 1980-1989 1990-1999 2000-2007 2008-2009 2010-2019 2022 2023 2024 2025 2026
real gdp growth 2.93 4.54 5.86 3.4 2.49 3.9 2.9 3.1 -0.5 4.5
CPI % 1.94 1.23 1.7 2.4 1.52 0.1 0.9 -0.1 2.4 1.2
Unemployment rate - - 4.65 3.8 4.22 6.3 6.2 - - -
Debt/GDP % 7.2 13.56 22.74 24.65 68.91 123.0 133.7 147.6 152.4 154.5
Current account balance/GDP % 2.17 -3.04 6.05 2.6 0.01 5.8 4.8 5.9 3.9 4.8

Data derived from World Economic Outlook Database. To see main macroeconomic indicator in graphs click here

History

In 1783, the Sunni AL-KHALIFA family took power in Bahrain. In order to secure these holdings, it entered into a series of treaties with the UK during the 19th century that made Bahrain a British protectorate. The archipelago attained its independence in 1971. A steady decline in oil production and reserves since 1970 prompted Bahrain to take steps to diversify its economy, in the process developing petroleum processing and refining, aluminum production, and hospitality and retail sectors. It has also endeavored to become a leading regional banking center, especially with respect to Islamic finance. Bahrain's small size, central location among Gulf countries, economic dependence on Saudi Arabia, and proximity to Iran require it to play a delicate balancing act in foreign affairs among its larger neighbors. Its foreign policy activities usually fall in line with Saudi Arabia and the UAE. In 2022, the United States designated Bahrain as a major non-NATO ally. The Sunni royal family has long struggled to manage relations with its Shia-majority population. In 2011, amid Arab uprisings elsewhere in the region, the Bahraini Government responded to similar pro-democracy and reform protests at home with police and military action, including deploying Gulf Cooperation Council security forces. Ongoing dissatisfaction with the political status quo continues to factor into sporadic clashes between demonstrators and security forces. In 2020, Bahrain and the United Arab Emirates signed the US-brokered Abraham Accords with Israel. In 2023, Bahrain and the United States signed the Comprehensive Security Integration and Prosperity Agreement to enhance cooperation across a wide range of areas, from defense and security to emerging technology, trade, and investment.

Environment

Area: 760 sq km km2

Climate: arid; mild, pleasant winters; very hot, humid summers

Natural resources: oil, associated and nonassociated natural gas, fish, pearls

Ethnic characteristics

Groups: Bahraini 47.4%, Asian 43.4%, other Arab 4.9%, African 1.4%, North American 1.1%, Gulf Co-operative countries 0.9%, European 0.8%, other 0.1% (2020 est.)

Languages: Arabic (official), English, Farsi, Urdu

Religions: Muslim 74.2%, other 25.9% (2020 est)

Government

Capital: Manama

Government type: constitutional monarchy

Executive branch

Chief of state: King HAMAD bin Isa Al-Khalifa (since 6 March 1999)

Head of government: Prime Minister Crown Prince SALMAN bin Hamad Al-Khalifa (since 11 November 2020)

Legislative branch

Description: National Assembly (Al-Majlis Al-Watani) - bicameral

Economic Overview

high-income, growing Middle Eastern island economy; oil and aluminum exporter with diversification led by services, construction and manufacturing; regional finance and tourism hub; high public debt linked to oil revenue dependence and limited tax base; vulnerable to water reservoir depletion

Industries

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

GDP by sector: Agriculture: 0.3% (2023 est.), Industry: 43.4% (2023 est.), Services: 51.9% (2023 est.)

Trade

Export partners: UAE 16%, Saudi Arabia 15%, South Africa 8%, USA 6%, India 4% (2023)

Export commodities: refined petroleum, aluminum, iron ore, aluminum wire, jewelry (2023)

Import partners: China 13%, Saudi Arabia 12%, UAE 11%, Brazil 8%, Australia 7% (2023)

Import commodities: iron ore, aluminum oxide, ships, cars, gold (2023)

Geography

Middle East, archipelago in the Persian Gulf, east of Saudi Arabia

Defence

Military expenditure: 2024: 3% of GDP (2024 est.)

Information derived from worldfactbook.io (Lupon Media), open successor to the CIA World Factbook. Data sourced from World Bank, IMF, UN and other international organizations.