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The Economy of Bahrain

Bahraini Economy

Bahrain's map

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.

GDP:

GDP - real growth rate: 6.1% (2008 est.) 8.1% (2007 est.) 6.7% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 0.3% industry: 43.6% services: 56% (2007 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: NA% highest 10%: NA%

Distribution of family income - Gini index:

Inflation rate (consumer prices):

Labor force: 463,000 note: 44% of the population in the 15-64 age group is non-national (2008 est.)

Labor force - by occupation: agriculture: 1% industry: 79% services: 20% (1997 est.)

Unemployment rate: 15% (2005 est.)

Budget: revenues: $7.226 billion expenditures: $5.806 billion (2008 est.)

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

Industrial production growth rate: 5.1% (2008 est.)

Electricity - production: 9.233 billion kWh (2006 est.)

Electricity - production by source:

Electricity - consumption: 8.742 billion kWh (2006 est.)

Electricity - exports: 0 kWh (2007 est.)

Electricity - imports: 0 kWh (2007 est.)

Oil - production: 48,610 bbl/day (2007 est.)

Oil - consumption: 32,830 bbl/day (2006 est.)

Oil - exports: 238,900 bbl/day (2005)

Oil - imports: 221,500 bbl/day (2005)

Oil - proved reserves: 124.6 million bbl (1 January 2008 est.)

Natural gas - production: 11.33 billion cu m (2006 est.)

Natural gas - consumption: 11.33 billion cu m (2006 est.)

Natural gas - exports: 0 cu m (2007 est.)

Natural gas - imports: 0 cu m (2007 est.)

Natural gas - proved reserves: 92.03 billion cu m (1 January 2008 est.)

Agriculture - products: fruit, vegetables; poultry, dairy products; shrimp, fish

Exports: $19.17 billion (2008 est.)

Exports - commodities: petroleum and petroleum products, aluminum, textiles

Exports - partners: Saudi Arabia 3.5%, US 2.5%, UAE 2.5% note: data exclude oil exports (2007)

Imports: $15.64 billion (2008 est.)

Imports - commodities: crude oil, machinery, chemicals

Imports - partners: Saudi Arabia 37.7%, Japan 7.2%, US 6.2%, Germany 4.7%, UK 4.5%, UAE 4.2%, China 4.1% (2007)

Debt - external: $10.57 billion (31 December 2008 est.)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: Bahraini dinars (BHD) per US dollar - 0.376 (2008 est.), 0.376 (2007), 0.376 (2006), 0.376 (2005), 0.376 (2004)

Fiscal year: