Bahrain's real fourth-quarter gross domestic product growth rose to 2.8 percent year-on-year in the fourth quarter of 2015, according to official figures.
The growth represented a rise from 2.4 percent in the third quarter, data from the Central Informatics Organisation showed.
GDP in Bahrain expanded 2.9 percent in 2015 after 4.5 percent growth in 2014.
In December Fitch Ratings revised Bahrain's outlook to negative from stable as it forecasts a wider double-digit budget deficit of 12.5 percent of GDP in the Gulf kingdom in 2015.
The ratings agency, which also affirmed the country's long-term foreign and local currency issuer default ratings at 'BBB-'and 'BBB' respectively, said in a statement that the revision comes as low oil prices continue to impact Bahrain's economy.
It said fiscal adjustment measures introduced so far have proven "insufficient" to offset lower oil prices, as social and competitiveness constraints hinder the pace of policy response.
Last week, ratings agency Moody's said lower oil prices will slow growth and increase budget deficits in oil-exporting Gulf Cooperation Council (GCC) countries in 2016, with fiscal deterioration set to be faster in Saudi Arabia, Bahrain and Oman.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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