Bahrain to stay on steady path
Bahrain’s economy is expected to remain broadly stable in 2024 after facing some turbulence during the Covid-19 pandemic. The gross domestic product (GDP) rose 2% during the second quarter of 2023 due to rapid growth in the transport, hospitality, trade, real estate and finance sectors while manufacturing and construction recorded contractions. The GDP is expected to grow 2.4% next year and further improves to 2.7% in 2025, according to FocusEconomics.
Bahrain maintains an exchange rate system with full convertibility and no restrictions on capital flows. The dinar has been officially pegged to the US dollar at a rate of BHD 0.38 per USD since 1980. The current forex regime is likely to stay in place out to 2028.
2024 OUTLOOK
2.8% GDP growth
1.8% Average inflation
5.08% 1-week deposit rate
LONG-TERM TRENDS
(3-year average) Year
GDP Growth (In%)
Inflation (In%)
2020-22
1
0.2
2023-25
2.7
1.5
2026-28
2.5
1.7
Sectors to Watch
Finance
Hospitality
Trade
Real estate
Construction
28 Federation of GCC Chambers
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