Bahrain records 2.73% growth in first quarter

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MANAMA: Bahrain’s economy saw growth of 3.43 per cent in current prices during the first quarter this year supported by continued expansion in the non-oil sector, show the latest numbers from the Information & eGovernment Authority (iGA).

The provisional report on national accounts released yesterday shows real growth (adjusted for inflation) during the quarter was 2.73pc.

According to it, the growth came against the backdrop of the increasing rates of spending on infrastructure projects such as the airport expansion, Bapco modernisation and Alba line 6, funded by the Gulf financial support package.

The results showed a significant increase in oil production during the quarter, with the sector logging 9.20pc jump in real prices and 7.93pc at current prices compared with the same period last year. The non-oil GDP grew by 1.52pc in real prices and had a comparable growth rate of 2.80pc, at current prices.

Meanwhile, the financial sector activities witnessed an increase of nearly 3.52pc in real prices and 3.41pc in current prices.

Besides, the implementation of the lowest VAT rate in the world of 5pc from January 1 this year, contributed to non-oil economic growth of 1.52pc in real terms and 2.80pc at current prices.

The report also showed that the manufacturing sector decreased by 2.97pc at current prices.

Construction sector activities grew by 2.86pc at real prices and 4.65pc at current prices.

Real estate and business service activities grew by 1.27pc at real prices and by 1.801pc at current prices.

While the transportation and communications sector activities increased by 1.49pc in real prices and by 2.37pc at current prices.

Social and personal services increased by 1.08pc in real prices and by 2.68pc at current prices.

Electricity and water economic activity has shown a slight decrease by 0.73pc at real prices and 0.84pc at current prices.

Private educational services increased by 2.09pc in real prices and 1.50pc at current prices, while private health services increased by 0.22pc at real prices and 1.11pc at current prices.

When comparing the first quarter of 2019 with the fourth quarter of 2018, the economic growth shows a decrease as a result of the relative decline in oil production and crude prices hence reducing the oil GDP by 8.36pc and 14.39pc at real and current prices, respectively.

The real non-oil GDP in the fourth quarter in 2018 recorded a decline by 1.21pc at real prices and 0.31pc at current prices.

Financial sector activities witnessed a slight increase of nearly 0.05pc in real prices and 0.36pc in current prices.

The construction sector grew by 0.94pc. The transport and communication sector has shown a slight increase by 1pc growth in real prices and 1.19pc in current prices.

According to the report, real estate and business sector has a shown a slight decrease by 0.56pc at real prices and improved by 0.51pc at current prices.

Activities like the manufacturing industry activities have noted a decline of 3.36pc at real prices and increased by 2.95pc at current prices. Social and personal services activities have also shown a decrease at real and current prices.

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