Bahrain’s economy contracted by 3.8% year-on-year in Q1 2026, reversing a 4.6% expansion in the previous quarter, according to preliminary data. This marked the first contraction since Q1 2021 and the steepest decline since Q3 2020, weighed down by a 37.2% plunge in oil activities, primarily due to restrictions imposed on maritime traffic through the Strait of Hormuz, which affected export capacity. Meanwhile, the non-oil sector grew by 2.2% (7.4% in Q4), contributing 90.1% to GDP, with nine out of 13 sectors recording positive growth. Among non-oil activities, financial and insurance services remained the largest contributor to GDP, accounting for 19.7%, and grew 8.6%, followed by manufacturing at 14.6%, public administration at 9.0%, and construction at 7.0%. Last year, the economy grew by 3.5%, supported by a 4.1% expansion in non-oil activities, while oil activities shrank slightly by 0.3%. The growth was faster than the government’s projection of 3.1%. source: Central Informatics Organisation - Kingdom of Bahrain
The Gross Domestic Product (GDP) in Bahrain contracted 3.80 percent in the first quarter of 2026 over the same quarter of the previous year. GDP Annual Growth Rate in Bahrain averaged 3.18 percent from 2000 until 2026, reaching an all time high of 11.43 percent in the fourth quarter of 2010 and a record low of -9.18 percent in the second quarter of 2020. This page provides the latest reported value for - Bahrain GDP Annual Growth Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Bahrain GDP Annual Growth Rate - data, historical chart, forecasts and calendar of releases - was last updated on August of 2026.
The Gross Domestic Product (GDP) in Bahrain contracted 3.80 percent in the first quarter of 2026 over the same quarter of the previous year. GDP Annual Growth Rate in Bahrain is expected to be -4.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Bahrain GDP Annual Growth Rate is projected to trend around 2.70 percent in 2027 and 2.90 percent in 2028, according to our econometric models.