Economic growth powering ahead

BAHRAIN saw its highest-ever non-oil sector contribution to the real gross domestic product (GDP) at 83.1 per cent in 2022 and the highest in a decade economic growth, it has emerged.

According to preliminary national accounts data produced by the Information and eGovernment Authority, real GDP grew by 4.9pc in 2022 compared to the previous year, which is the highest real GDP growth rate since 2013.

This was driven by the non-oil sector which grew by 6.2pc, the highest growth rate recorded over the past 10 years, thus, exceeding the 5pc real growth target set in the Economic Recovery Plan. Real GDP is the value of economic output adjusted for price changes.

The growth was driven by Bahrain’s economic diversification initiatives reflecting the collaborative efforts of the public and private sectors in growing the non-oil economy.

The oil sector, in contrast, saw a small 1.4pc decline.

Hotels and restaurants lead the non-oil sector expanding at 13.9pc, followed by government services at 6.7pc, real estate and business activities at 5.5pc, trade at 5.4pc, manufacturing at 4.9pc, transportation and communications at 4.5pc, financial corporations at 4.1pc, and construction at 1.4pc. In the fourth quarter of 2022, the real GDP growth reached 4.1pc.

The government services sector grew by 8.4pc in real terms, and the financial corporations sector recorded a notable growth of 8.2pc.

Both trade and real estate and business activities sectors recorded growths of 6.6pc and 6pc, respectively, while the manufacturing sector grew by 4.9pc.

Nominal GDP growth in 2022 reached 12.9pc, led by a strong 33.7pc expansion in the oil sector due to high oil prices. The non-oil sector grew by 9.4pc in nominal terms during the year.

The figures were released on the day Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa outlined details in Parliament of Bahrain’s financial status and future steps to strengthen the economy.

“The priority is improving the living standards of people. We have come up with our own measures but we’ll work with the legislators as we sail the ship to safety whilst also ensuring that people get what they want,” he told MPs.

The minister had also said on Monday that the kingdom was on track to implement all its programmes and priorities aimed at supporting economic growth and advanced development plans, as he met editors-in-chief of local newspapers, as reported in the GDN.

 

Source: https://www.gdnonline.com/Details/1217974/Economic-growth-powering-ahead

 

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