Bahrain’s economy advanced by 4.6% year-on-year in Q4 2025, accelerating from a 4.0% expansion in the previous quarter, according to preliminary data. This marked the fastest growth since Q2 2022, driven by robust growth in the non-oil sector (7.4% vs 3.1% in Q3). By contrast, oil activities contracted by 12.3%, after growing 9.3% in Q3. Across most economic sectors, growth strengthened, notably in financial and insurance activities (5.6% vs 5.0%), 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 eased for 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 of 2025, the economy grew by 3.5%, supported by a 4.1% expansion in non-oil activities, while oil activities shrank slightly by 0.3%. The growth was faster than the government’s projection of 3.1%. On a quarterly basis, the GDP grew by 7.8%
