Manama: At a seminar hosted today by the Bahrain Economic Development Board (EDB) and the Centre for Research at Bahrain Institute for Banking and Finance (BIBF), Dr. Jarmo Kotilaine, Chief Economist at the Bahrain EDB, argued that productivity growth - particularly in tradable sectors such as manufacturing - should be at the centre of sustained economic growth in the Kingdom.
The seminar, entitled "Making sense of economic growth: Global experience and the Bahraini context", saw contributions from panelists, Khalid Hamad, Executive Director - Banking Supervision, Central Bank of Bahrain, Dr. Mohammad Omar Farooq, Head of Centre for Research, Bahrain Institute for Banking and Finance, Dr. Jarmo Kotilaine, Chief Economist, Bahrain Economic Development Board and Marwa Al Eskafi, Officer, Bahrain Economic Development Board.
According to Dr. Kotilaine, much of Bahrain's growth over the past decade has come from the rapid expansion of sectors such as financial services, retail and services, construction and real estate. However, while they will remain important in the years ahead as well, the emphasis of development will likely shift more towards the tradable sector. Sectors of particular promise include knowledge-based services and high value-added manufacturing.
Dr. Kotilaine stressed the importance of sustained investment as a driver of growth - something that has been particularly well highlighted by the post-war experience of Japan and the Asian "tiger economies." One of Bahrain's key competitive advantages in the coming years will be its growing young population, and investments in this human capital will be critical for the sustained expansion of the non-oil economy. In this area, Bahrain can build on an established track record of educational reform and liberalization. Ensuring access to capital through developed capital markets and a benign investment climate will also be critical for enabling the Kingdom to fully capitalize on this potential.
Speaking at the event Dr. Kotilaine said: "What is important is not just the level of economic growth in a given year but a development pattern that ensures sustainable and inclusive growth. The quality of economic growth is above all measured by its ability to provide Bahrainis with greater well-being and opportunities - now and in the future."
Bahrain saw GDP growth of 3.4% in 2012, with non-oil growth reaching 6.7%, including growth of more than 9% in manufacturing and 3.5% in financial services. Estimated overall growth in 2013 is expected to exceed 5% on the back of a rebound in oil production and ongoing expansion in the non-oil sector.
About The Bahrain Economic Development Board (EDB)
The Bahrain Economic Development Board (EDB) is a dynamic public agency with an overall responsibility for attracting inward investment into Bahrain, and is focusing on target economic sectors in which the Kingdom offers significant strengths.
Key areas of focus include manufacturing, ICT, and logistics and transport services as well as other sub-sectors. The Financial Services sector in Bahrain is particularly strong and the EDB supports in the continuing growth of the banking industry and key sub-sectors, including Islamic Finance, Asset Management, Insurance and Re-Insurance.
For more information on the Bahrain EDB visit www.bahrainedb.com; for information about Bahrain visit www.bahrain.com
Further information please contact:
Noora Abul, Bahrain Economic Development Board
Tel: +973 17 589 903
Email: internationalmedia@bahrainedb.com
© Press Release 2013
