Bahrain's economy is moving in the right direction and continues to record good performance, as per the latest government assessment.The non-oil sector contributed to boosting the economy, achieving a growth (at current prices) of 5.9 per cent per annum, and the real non-oil gross domestic product (GDP) grew (at constant prices) by 3.8pc on an annual basis.
This was revealed in the 2021 Bahrain quarterly economic report (Q3), issued by the Finance and National Economy Ministry. The oil sector witnessed a remarkable growth (at current prices) of 39.9pc annually, while it witnessed a decline (at constant prices) of 4.6pc on an annual basis.The report summarises the most significant developments concerning the performance of the local economy and economic sectors in light of Bahrain’s recovery in various sectors in parallel with the implementation of the economic recovery plan.
It reviews the performance of a number of economic indicators and the latest developments related to infrastructure projects, in addition to the advanced positions Bahrain has achieved in the competitiveness reports.The results recorded during the third quarter of 2021 indicated an improvement in the kingdom’s economy in conjunction with the implementation of the economic recovery plan, which aims to adopt new strategies that contribute to activating the role of priority sectors and launch a number of initiatives aimed at strengthening the economy and creating qualitative opportunities for citizens to achieve comprehensive economic development.
According to the preliminary results of the national accounts issued by the Information and eGovernment Authority, the nominal GDP (at current prices) grew 10.2pc compared with the third quarter of 2020, while the real growth rate (at constant prices) reached 2.1pc on an annual basis.The report reflected the most significant indicators of a number of non-oil sectors during the third quarter of 2021, with the transportation and communications sector achieving the highest growth rate (25.8pc), followed by the real estate activities and business services sector (4.7pc), trade sector (4.5pc), government services sector (1.9pc) and the building and construction sector (0.7pc).
The financial projects sector topped the non-oil sectors with 17.9pc contribution to the GDP, followed by the manufacturing sector (14.1pc), government services sector (12pc), building and construction sector (7.5pc) and the transportation and communications sector (6.7pc).Regarding development projects included in the Gulf Development Programme, the report showed an increase in the value of funded projects during the third quarter of 2021 with awarded projects worth $172 million, bringing the total value of awarded projects to about $5.8 billion, an increase of 3.1pc compared to the second quarter of 2021.
The awarded projects included contracts for the Salman City project for the construction of additional housing units, and contracts for the first phase of the South Bahrain Ring Road construction project.The report included Bahrain’s main achievements in terms of competitiveness. The kingdom ranked second in the Arab world and first in the Gulf as the freest economy in the Index of Economic Freedom in the World 2021 issued by the Fraser Institute.
It ranked fourth globally out of 135 countries in the report that evaluates the main areas of Islamic finance in the Islamic Finance Development Report 2021 published by Refinitiv. Bahrain was also ranked among the top 10 regional countries in the Global Talent Competitiveness Index 2021 issued by INSEAD Business School. It also ranked 15 globally among 84 economies in the Greenfield FDI Performance Index 2021 issued by the Financial Times.
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