Bahrain’s economy grows 5.72pc in second quarter
MANAMA: Bahrain’s economy grew at 5.72 per cent in the second quarter (Q2) of 2021, the highest in terms of constant prices since 2019, as revealed by the latest government assessment.
The national accounts report from the Information and e-Government Authority (iGA) estimates that gross domestic product (GDP) growth during Q2 was 20.74pc in terms of current prices, when compared with the same quarter in 2020.
Constant prices adjust for the effects of inflation and using constant prices enables measurement of the actual change in output and not just an increase due to the effects of inflation.
Supported by resurgence in activity in transportation, telecommunications, hotels and restaurants, the non-oil sector recorded growth of 7.78pc in constant prices and 12.82pc in current prices.
However, the oil sector saw a 2.41pc decline in constant price terms even though there was an increase of 98.30pc at current prices compared to the same quarter of 2020.
According to the report, the economic rebound is attributable to government decisions, including the implementation of measures to contain the epidemic, overcome challenges and alleviate the crisis.
During Q2, growth was led by the transport and telecommunications sector (up 47.92pc in constant prices), followed by hotel and restaurants (up 45.22pc in constant prices), due to the gradual opening of commercial activities and the recovery of traffic and transport in the kingdom.
Social and personal services saw a rise of 10.86pc, financial projects grew by 9.40pc and health services recorded an increase of 8.59pc.
As per the report, agriculture and fishing activity jumped about 5.57pc, whereas real estate and business services grew by 4.73pc.
Meanwhile, trade saw an increase of 4.17pc while other government services grew by about 3.34pc.
Manufacturing, another key sector, recorded growth of 2.29pc, and electricity and water activity increased by 2.80pc.
Analysing sequential or quarter-or-quarter performance, the report found that economic growth was 3.51pc in constant price terms and 6.37pc in current prices.
The latest data suggests that recovery has taken root after the rebound in the first quarter this year led by a recovery in oil prices.
Bahrain’s GDP contracted by an estimated 5.8pc in constant price terms in 2020 as the pandemic and lower oil prices reduced consumption and investment activities.
In particular, it was hit by contractions in larger GCC economies, given the close linkages between the countries through the tourism, transportation and real estate sectors.
avinash@gdn.com.bh
