Economy expands 4.3 per cent in first nine months

22 December 2010, Manama: Bahrain's economy is on target to meet expectations of 4 per cent year on year growth for the full year, according to the Bahrain Economic Quarterly, Q4 2010. The quarterly reports, first published in December 2009, have been developed by the Bahrain Economic Development Board (EDB), to provide regular assessments and key information on the Bahrain economy, in the context of the regional and global outlook. GDP growth in Bahrain was 4.3 per cent through the first nine months of 2010.

There was particularly strong growth in hotels and restaurants (up 15 per cent year on year in Q3 2010), manufacturing (up 8 per cent) and financial services (up 6 per cent).

Bahrain's economic progress has also been supported by two recent independent reports, following visits by the IMF and Standard & Poor's.

The IMF noted that: "The near-term outlook is favorable. Buoyed by the rebound in oil prices, the continuing recovery in the global economy, and fiscal stimulus, growth is expected to accelerate from the 3 percent recorded in 2009 to 4 percent in 2010 and further to 5 percent in 2011."

They also noted that: "The CBB's existing macroprudential tools have worked well in preventing excesses from building up in the domestic financial system and will continue to play a key role in insulating the economy from fluctuations in global capital markets."

Standard & Poor's also recently reaffirmed its 'A' rating for Bahrain's sovereign debt, with a stable outlook. In reaffirming its rating, it stated that: "The ratings on the Kingdom of Bahrain reflect the government's net financial asset position, renewed development of its hydrocarbon resources, and strong international alliances."

Shaikh Mohammed bin Essa Al Khalifa, Chief Executive of the Bahrain EDB, said: "We are delighted to see that economic growth continues to match our expectations, which illustrates the benefits of our tried and tested single regulator and the strength of our prudent, business-friendly economic policies that have meant Bahrain is well placed to achieve long-term, sustainable growth. . The fact that our strategy and vision continue to be supported by key international organisations such as the IMF and Standard & Poor's is also important."

Sustainable economic expansion is an important part of Economic Vision 2030, the blueprint for the development of Bahrain's economy, government and wider society over the coming decades.  Bahrain is two years into the process, which the EDB is leading under the guidance of His Royal Highness Prince Salman Bin Hamad Al Khalifa, the Crown Prince of Bahrain and Chairman of the EDB. The report also highlights that Bahrain remains on track to achieve the key aim of Economic Vision 2030, of doubling Bahraini real household income by 2030.

The full report can be found at: http://www.bahrainedb.com/quarterly-review.aspx

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About The Bahrain Economic Development Board (EDB)
The Bahrain Economic Development Board (EDB) is a dynamic public agency with an overall responsibility for formulating and overseeing the economic development strategy of Bahrain, and for creating the right climate to attract direct investment into the Kingdom.

The role of the Bahrain EDB is to provide leadership by uniting all of the Kingdom's shareholders through a unified vision, and to develop key strategies for growth. The Bahrain EDB also acts as a facilitator, helping all of Bahrain's stakeholders to understand and adopt the changes necessary for progress. In addition, the Bahrain EDB provides sound project management to ensure that all agreed reform initiatives are implemented in an effective and timely manner.

The Bahrain EDB is also responsible for attracting inward investment into Bahrain, and is focusing on six target economic sectors in which the Kingdom offers significant strengths. These are financial services, downstream industries, tourism, business services, logistics, and education and training.

For more information on the Bahrain EDB visit www.bahrainedb.com; for information about Bahrain visit www.bahrain.com  

Further information
Jenan Al Maskati,
Bahrain Economic Development Board
Tel: +973 17 589 930
Email: internationalmedia@bahrainedb.com  

Alisdair Haythornthwaite,
Bell Pottinger
Tel: + 971 566 901 725
Email: ahaythornthwaite@bell-pottinger.co.uk

© Press Release 2010