Bahrain’s economy expanded by 4.6% year-on-year in Q4 2025, up from 4.0% in the previous quarter, according to preliminary data. This was the strongest pace of growth since Q2 2022, underpinned by a sharp acceleration in the non-oil sector (7.4% vs 3.1% in Q3). In contrast, oil-related activities contracted by 12.3%, reversing a 9.3% increase recorded in Q3.
Growth strengthened across most major sectors, led by financial and insurance activities (5.6% vs 5.0% in Q3), followed by construction (5.0% vs 4.4%), transportation and storage (4.7% vs 4.4%), and wholesale and retail trade (4.2% vs 3.3%). Meanwhile, output growth moderated in real estate (4.3% vs 5.4% in Q3), education (4.0% vs 4.8%), and manufacturing (3.7% vs 3.9%).
For the full year 2025, Bahrain’s GDP grew by 3.5%, supported by a 4.1% expansion in non-oil activities, while oil activities edged down by 0.3%. The overall growth rate exceeded the government’s projection of 3.1%.
