GDP in Bahrain
Annual GDP growth should have waned in Q1, following a robust performance in 2022. The moderation will likely be driven by a weakening oil sector: Oil output plunged nearly 7% year on year in Q1. In contrast, private spending should have contributed to overall growth: Price pressures cooled in Q1 to their lowest average since Q4 2021, aiding household budgets. That said, the Central Bank hiked interest rates further in February and March to protect the dinar’s peg to the USD, boding ill for credit and investment. In other news, S&P Global Ratings affirmed the country’s ‘B+’ rating with a positive outlook on 29 May; the credit-rating agency lauded the government for reforms that have boosted the non-oil sector, as well as a growing current account surplus. Meanwhile, following an 18-month spat, Bahrain fully restored diplomatic ties with Lebanon in May.
Bahrain GDP Chart
Bahrain GDP Data
|GDP (USD bn)||35.3||37.7||38.6||34.6||38.8|