Bahrain's non-oil GDP at constant prices grew by 2.2% in Q1

MANAMA: Bahrain's non-oil GDP at constant prices grew by 2.2% in Q1 2026, according to Bahrain Economic Quarterly Report for Q1 2026 released by the Ministry of Finance and National Economy.

The report, carried by Bahrain News Agency (BNA), noted that the national economy recorded strong performance in January and February 2026, before it was impacted in March 2026 due to the hostile Iranian aggression on Bahrain.

GDP at constant prices contracted by 3.8% YoY in Q1 2026, driven by a 37.2% decline in oil activities, primarily due to the imposed restrictions on maritime traffic through the Strait of Hormuz which affected export capacity, alongside scheduled maintenances.

In spite of local circumstances, non-oil activities continued to expand, recording growth of 2.2% YoY. At current prices, GDP contracted by 2.7% YoY, caused by the 31.1% decline in oil activities, compared to a 1.9% increase in non-oil activities.

The report highlights the pivotal role of non-oil activities, which contributed 90.1% to GDP at constant prices during Q1 2026, with 9 out of 13 non-oil economic activities recording positive growth.

Among non-oil activities, Financial and Insurance Activities remained the largest contributor to GDP, accounting for 19.7% and recording an 8.6% YoY increase, followed by Manufacturing at 14.6%, Public Administration at 9.0%, and Construction at 7.0%.

Meanwhile, the remaining non-oil activities each contributed between 2% and 5% of total real GDP, reflecting the Kingdom’s diversified economic structure.