Bahrain’s Economy Grows 2.7% in Q1 2025 as Non-Oil Sectors Drive Expansion

Bahrain’s Economy Grows 2.7% in Q1 2025 as Non-Oil Sectors Drive Expansion

Bahrain’s economy grew by 2.7% in real terms during the first quarter of 2025, driven by strong performance across both oil and non-oil sectors, according to data from the Information & eGovernment Authority and the Ministry of Finance and National Economy.

The oil sector posted robust growth of 5.3%, supported by higher output and favorable global prices. Meanwhile, the non-oil economy which makes up nearly 85% of real GDP expanded by 2.2%, highlighting continued diversification.

Among non-oil industries, Accommodation and Food Services recorded the highest growth at 10.3%, followed by Financial & Insurance Activities with a solid 7.5% increase. The construction sector rose by 5.4%, while education and professional services grew by 2.5% and 2.2%, respectively.

In nominal terms, GDP rose by 3.0%, with oil and non-oil sectors growing at 4.6% and 2.8% respectively.

Foreign direct investment (FDI) stock climbed to BHD 17.1 billion, marking a 3.5% year-on-year increase a sign of growing investor confidence. Additionally, inflation remained under control, with the Consumer Price Index (CPI) rising just 0.1%, reflecting macroeconomic stability. This performance reaffirms Bahrain’s resilience and commitment to economic reform, positioning it as a stable and diversified economy within the GCC.