Bahrain Economy 2008

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.

GDP (purchasing power parity):
$24.61 billion (2007 est.)

GDP (official exchange rate):
$13.17 billion (2007 est.)

GDP - real growth rate:
6.6% (2007 est.)

GDP - per capita (PPP):
$34,700 (2007 est.)

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

Labor force:
363,000
note: 44% of the population in the 15-64 age group is non-national (2007 est.)

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

Unemployment rate:
15% (2005 est.)

Population below poverty line:
NA%

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

Inflation rate (consumer prices):
3.5% (2007 est.)

Investment (gross fixed):
17.6% of GDP (2007 est.)

Budget:
revenues: $6.048 billion
expenditures: $5.082 billion (2007 est.)

Public debt:
28.2% of GDP (2007 est.)

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:
5.5% (2007 est.)

Electricity - production:
8.187 billion kWh (2005)

Electricity - consumption:
7.614 billion kWh (2005)

Electricity - exports:
0 kWh (2005)

Electricity - imports:
0 kWh (2005)

Oil - production:
184,000 bbl/day (2007 est.)

Oil - consumption:
31,000 bbl/day (2005 est.)

Oil - exports:
235,500 bbl/day (2004)

Oil - imports:
216,300 bbl/day (2004)

Oil - proved reserves:
124.6 million bbl (1 January 2006 est.)

natural gas - production:
10.27 billion cu m (2005 est.)

natural gas - consumption:
10.27 billion cu m (2005 est.)

natural gas - exports:
0 cu m (2005 est.)

natural gas - imports:
0 cu m (2005)

natural gas - proved reserves:
88.26 billion cu m (1 January 2006 est.)

Current account balance:
$2.009 billion (2007 est.)

Exports:
$13.16 billion (2007 est.)

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

Exports - partners:
Saudi Arabia 3.2%, US 3%, Japan 2.3% (2006)

Imports:
$9.784 billion (2007 est.)

Imports - partners:
Saudi Arabia 37.6%, Japan 6.8%, US 6.2%, UK 6.2%, Germany 5.1%, UAE 4.2% (2006)

Economic aid - recipient:
$103.9 million; note - $50 million annually since 1992 from the UAE and Kuwait (2004)

Reserves of foreign exchange and gold:
$3.474 billion (31 December 2007 est.)

Debt - external:
$7.692 billion (31 December 2007 est.)

Stock of direct foreign investment - at home:
$11.55 billion (2006 est.)

Stock of direct foreign investment - abroad:
$6.039 billion (2006 est.)

Market value of publicly traded shares:
$21.12 billion (2006)

Currency (code):
Bahraini dinar (BHD)

Exchange rates:
Bahraini dinars per US dollar - 0.376 (2007), 0.376 (2006), 0.376 (2005), 0.376 (2004), 0.376 (2003)