Bahrain Q2 GDP Growth Hits One-Year Low

Bahrain’s economy expanded by 2.5% year-on-year 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, professional, scientific, and technical activities recorded the highest growth (12.0%), followed by wholesale and retail trade (6.7%), real estate (4.7%), and accommodation and food services (4.6%). Financial and insurance activities remained the largest contributor to real GDP, accounting for 17.0% and growing 2.4%, while manufacturing was the second largest, accounting for 14.2% of GDP. In the first half of the year, GDP grew by 2.6%. For 2025, the economy is expected to grow by 2.7%, supported 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.