Economic Shift

TDT | Manama

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The International Monetary Fund projects that Bahrain’s non-hydrocarbon sector could account for nearly 90 percent of the Kingdom’s output by 2030.

An IMF mission led by John Bluedorn visited Manama from November 9th to 20th to conduct discussions for the 2025 Article IV consultation, after which staff will prepare a report for the IMF’s Executive Board, scheduled to review the consultation in January. IMF staff reported that real GDP grew by 2.6 percent in 2024 amid elevated global and regional uncertainty, with inflation at 0.9 percent.

Growth is expected to reach 2.9 percent in 2025 and 3.3 percent in 2026, supported by refinery upgrades and robust services, including tourism and the financial sector. Over the medium term, real GDP is projected to grow at around 3 percent, while consumer prices remain flat in 2025 before gradually converging toward 2 percent.

The IMF noted that financial stability has been well maintained and highlighted ongoing enhancements to macroprudential and liquidity management tools. Staff pointed to structural reforms to boost productivity, deepen GCC and nonGCC trade links, and further enhance Bahrain’s business-friendly environment.