Bahrain profile

Demography and Health

Bahrain's population is about 1.59 million in 2024, a relatively small country by global standards with a high degree of openness to migration. The birth rate is 12.5 per 1,000 people (2023) and the crude death rate is 2.09 per 1,000 people (2023), indicating modest natural population growth. Life expectancy at birth stands at 81.3 years (2023), reflecting strong health outcomes and access to medical care. The under-5 mortality rate is 8.6 per 1,000 live births (2023), a sign of solid child health services, though room remains for continued improvement, especially in specialized infant care. Net migration reached 22,699 in 2024, suggesting that Bahrain continues to attract workers and residents from abroad, which is common in Gulf economies and contributes to its demographic and labor dynamics. Suicide mortality is 4.66 per 100,000 population (2021), a health indicator that may reflect broader social and mental health considerations. > In health financing, current health expenditure is 3.84% of GDP (2022), while domestic general government health expenditure per capita, PPP, is 1,465 current international US$ (2022). These figures point to a government role in health funding and access, with per-capita spending that supports a high life expectancy despite a relatively small public health budget share. Taken together, Bahrain’s health outcomes—long life expectancy, manageable child mortality, and a sizable migrant workforce—are consistent with an advanced urban-health system that benefits from fiscal capacity and strong service delivery, even as health expenditure remains a fraction of GDP relative to many high-income peers.

Economy

Bahrain records a high-income profile with a GDP per capita of 30,048 current US$ in 2024 and a GDP per capita, PPP of 67,211 international dollars, underscoring substantial purchasing power and living standards. The economy is highly open to trade and services, as reflected in the export orientation: exports of goods and services account for 87.4% of GDP in 2023, while imports of goods and services represent 70.1% of GDP in 2023. Inflation remains subdued at 0.92% in 2024, indicating price stability that supports consumer and business planning. Military expenditure stands at about 1.383 billion US$ in 2023, signaling defense spending within the broader fiscal framework of a small, strategic economy. > The external accounts show resilience: the current account balance is 4.78% of GDP in 2024, suggesting a favorable external position, aided by strong export performance and service-oriented incomes. Bahrain also attracts foreign investment, with net inflows of foreign direct investment reaching 5.66% of GDP in 2024, reinforcing investor confidence in the country’s strategic location and business environment. Total greenhouse gas emissions per capita are relatively high at 40.4 t CO2e, reflecting energy-intensive activities and climate-related considerations that frame the economic and environmental policy dialogue. These indicators collectively point to a mature, service- and trade-oriented economy with a sizable openness to global markets and capital flows, yet facing sustainability challenges tied to energy use and environmental footprint.

Trade and Investment

Bahrain is highly trade-enabled, with exports of goods and services comprising 87.4% of GDP in 2023 and imports at 70.1% of GDP in 2023, indicating a heavily open economy with a strong external orientation. The country’s current account remains in positive territory (4.78% of GDP in 2024), reflecting healthy trade and income flows. Foreign direct investment net inflows are meaningful, at 5.66% of GDP in 2024, highlighting ongoing investor interest in Bahrain’s strategic location, regulatory landscape, and financial services ecosystem. While high-tech export performance exists, high-technology exports total 11.5 million US$ in 2023 with a relatively low relative rank (110), suggesting that Bahrain’s technology export base is smaller than many peers but remains a focus for diversification. Patent activity by residents is modest (3.0 applications in 2021, rank 94), indicating room for strengthening domestic innovation ecosystems. The logistics and trade foundation is solid, with a Logistics Performance Index of 3.6 (quality of trade and transport-related infrastructure) in 2022, ranking around 10th globally, which aids efficiency in cross-border transactions and supply chains.

Governance and Institutions

Governance indicators reveal a nuanced picture. Political stability and absence of violence or terrorism score −0.374 in 2023 (rank 137), signaling some geopolitical risk considerations in a region with regional security dynamics. Regulatory quality is comparatively strong at 1.08 (2023, rank 32), suggesting robust rule-making ability and policy quality that can support business and investment. The rule of law stands at 0.469 (2023, rank 65), and control of corruption is 0.178 (2023, rank 74), indicating moderate institutional credibility and anti-corruption performance, with opportunities for further strengthening. Government effectiveness is relatively solid at 0.697 (2023, rank 49). Taken together, Bahrain exhibits a governance profile that is capable and reform-minded, though external security pressures and corruption perceptions remain a consideration for investors and policymakers alike.

Infrastructure and Technology

Infrastructure and technological capacity in Bahrain show a mix of strong connectivity and growth potential. The country achieves universal internet access, with 100% of the population using the Internet in 2023, underscoring a digital-ready society. The logistics infrastructure receives high marks, evidenced by a Logistics Performance Index score of 3.6 (2022), which places Bahrain among the higher-ranked economies for trade and transport efficiency. In terms of innovation and technology, high-technology exports amount to 11,523,340 US$ (2023), though the absolute value and rank (110) indicate room to expand advanced manufacturing and biotech capabilities. Patent activity among residents is modest (3.0 applications in 2021, rank 94), suggesting opportunities to bolster domestic R&D, venture financing, and university–industry collaboration. The combination of strong logistics, near-universal connectivity, and ongoing investment in services-oriented sectors supports Bahrain’s ambition to be a regional hub for finance, logistics, and knowledge-based industries.

Environment and Sustainability

Environmental indicators highlight water scarcity and carbon intensity as key challenges. The level of water stress, measured as freshwater withdrawal relative to available resources, is 134.0 (2021), with a global rank of 11, marking Bahrain as one of the more water-stressed economies. Renewable energy plays a minimal role, with renewable energy consumption at 0% of total final energy consumption in 2021, signaling a heavy reliance on conventional energy sources and the potential for diversification. Total greenhouse gas emissions per capita are very high at 40.4 t CO2e, excluding LULUCF, reflecting energy-intensive activities such as desalination and electricity production in a hot, arid environment. Conversely, there is positive momentum in climate-related governance and policy in the Gulf region, but Bahrain’s environmental trajectory will require ongoing investment in energy efficiency, water management, and renewable integration to reduce the carbon footprint while maintaining high living standards and economic growth. The combination of high energy demand, water stress, and concentrated carbon emissions indicates a need for accelerated environmental strategies aligned with economic diversification and sustainable development goals.