Bahrain Q2 GDP Growth Hits One-Year Low

Bahrain’s economy expanded by 4.0% year-on-year in Q3 2025, accelerating from a 2.5% growth in the previous quarter, preliminary data showed. This marked the fastest growth since Q4 2023, driven by sustained growth in the non-oil sector (3.1% vs 3.5% in Q2), and a sharp rebound in oil activities (9.3% vs -2.6%). On economic sectors, growth strengthened across most sectors namely manufacturing (3.9% vs 1.0%), construction (4.4% vs 2.7%), financial and insurance activities (5.0% vs 2.2%), public administration (2.4% vs 1.7%), transportation and storage (4.4% vs 2.6%), education (4.8% vs 2.9%), and real estate (5.4% vs 4.7%). Meanwhile, growth moderated for wholesale and retail trade (3.3% vs 6.7%). In year of 2025, GDP growth is projected at 3.1%, driven by non-oil at 3.1% and oil activities at 3.0%. In 2026, economic growth is forecast to accelerate to 3.3%, boosted by a 3.5% expansion in non-oil activities and a 2.1% increase in oil output. On a quarterly basis, the GDP grew by 2.3%.

Bahrain’s economy advanced by 2.5% yoy in Q2 2025, slowing from 2.7% growth in the previous quarter and marking the softest expansion since Q2 2024, preliminary data showed. The growth was driven by a 3.5% increase in the non-oil sector, while oil activities declined by 2.6%. Among economic sectors, growth moderated for agriculture, forestry, and fishing (0.3% vs 4.3% in Q1), construction (2.75% vs 5.4%), and accommodation and food services (4.6% vs 10.35%), while mining fell (-2.6% vs 5.3%). Financial and insurance activities remained the largest contributor to real GDP, accounting for 17.0% and growing 2.4%, while manufacturing was the 2nd largest, accounting for 14.2% of GDP. In H1 of 2025, GDP grew by 2.6%. For 2025, the economy is expected to grow by 2.7%, boosted by a 3.4% expansion in non-oil activities. In 2026, GDP is projected to increase by 3.3%, driven by a 3.9% rise in non-oil activities. On a quarterly basis, the GDP grew by 2.9%, rebounding from a 7.6% gain in Q1.

Bahrain’s economy grew by 2.7% year-on-year in Q1 2025, easing from a 3.4% rise in the previous quarter, preliminary data showed. Among economic activities, growth moderated for public administration (0.9% vs 4.7%), construction (5.4% vs 6.8%), transportation and storage (1.9% vs 11.0%), and information and communication (1.4% vs 12.4%), while manufacturing (-0.4% vs 7.0%) declined. Meanwhile, economic activities grew for financial and insurance activities (7.5% vs 4.8%), real estate (2.0% vs 0.9%), and accommodation and food services (10.3% vs 6.1%). Additionally, both the oil (5.3%) and non-oil sector (2.2%) saw an increase. On a quarterly basis, the GDP fell by 7.6%, reversing a 7% growth in Q4 2024.