Bahrain’s economy expanded by 4.0% year-on-year in Q3 2025, accelerating from a 2.5% growth in the previous quarter, preliminary data showed. This marked the fastest growth since Q4 2023, driven by a 3.1% increase in the non-oil sector and a sharp rebound in oil activities, which surged 9.3% following a 2.6% contraction in Q2. On economic sectors, growth strengthened across most sectors namely manufacturing (3.9% vs 1.0%), construction (4.4% vs 2.7%), financial and insurance activities (5.0% vs 2.2%), public administration (2.4% vs 1.7%), transportation and storage (4.4% vs 2.6%), education (4.8% vs 2.9%), and real estate (5.4% vs 4.7%). Meanwhile, growth moderated for wholesale and retail trade (3.3% vs 6.7%). For the whole year of 2025, GDP growth is projected at 3.1%, driven both by non-oil at 3.1% and oil activities at 3.0%. In 2026, economic growth is forecast to accelerate to 3.3%, boosted by a 3.5% expansion in non-oil activities and a 2.1% increase in oil output.

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