Bahrain Merchandise Exports (USD bn)

Exports in Bahrain

Following 2022’s strong performance, annual GDP growth should have moderated so far this year. Challenges to the performance of the oil sector mounted: Year-on-year crude production plunged over 14% in the first two months of the year. Meanwhile, private spending was likely a key driver of growth at the outset of 2023; price pressures in Q1 softened to their lowest level since Q4 2021, providing some support to consumers’ budgets. In the fiscal arena, authorities presented the 2023–2024 state budget in early April; the plan aims to drastically cut the public deficit to nearly BHD 570 million (around USD 1.5 billion), a fourth of 2021–2022’s figure. Total revenue in the period is expected to be BHD 6.6 billion. In other news, Bahrain and Qatar restored diplomatic ties in April following a years-long dispute; this bodes well for trade and tourism.