National Economy Grows 3.3% in Q1 2024, Driven by Non-Oil Sectors

TDT | Manama

The Daily Tribune - www.newsofbahrain.com   

Significant growth has characterised the Kingdom of Bahrain’s economic landscape, as detailed in the Economic Quarterly Report for Q1 2024, now available on the Ministry of Finance and National Economy's website.

The Information and eGovernment Authority has updated the national accounts to reflect the latest International Standard Industrial Classification of all Economic Activities (Rev. 4). This adjustment aims to standardise the data, improving its comparability across various platforms and providing a clearer picture of economic activities. Preliminary figures indicate a 3.3% growth in GDP at constant prices for Q1 2024, driven by increases in both oil and non-oil sectors, which rose by 3.4% and 3.3% respectively. At current prices, GDP saw a 3.4% year-on-year increase, with the oil sector expanding by 7.4% and the non-oil sector by 2.8%.

The report details the vital role of non-oil sectors in Bahrain’s economic expansion, showing they contributed 85.9% of GDP at constant prices in Q1 2024. The accommodation and food services sector led with a 10.7% growth, bolstered by a 31.7% increase in tourist arrivals and a rise in occupancy rates for 5- and 4-star hotels to 50.8%.

The financial and insurance sector grew by 7.4% at constant prices, driven by a 14.3% increase in electronic money transfers and a 10.9% rise in the banking sector’s balance sheet. The information and communications sector expanded by 6.6%, with mobile phone subscriptions increasing by 13.8% and mobile broadband subscriptions by 3.1%. The wholesale and retail trade sector grew by 5.7%, spurred by a 9.0% rise in point-of-sale and e-commerce transactions and a 4.5% increase in commercial registrations.

The transport and storage sector experienced a 5.3% growth, supported by an 11.0% rise in passengers at Bahrain International Airport and a 10% increase in aircraft movements. The manufacturing sector saw a 3.9% increase, with Bapco reporting a 25.3% rise in production and Alba increasing its output by 1.9%. The real estate sector grew by 0.9%, with property transaction values up by 22.8% and the number of transactions rising by 12.8%.

Additionally, Bahrain has made notable strides in global competitiveness rankings. The kingdom advanced nine places in the 2024 Global Competitiveness Ranking by the International Institute for Management Development (IMD), reaching 21st place. It also moved to 5th globally and 3rd in the Arab world in the 2024 ICT Development Index by the International Telecommunication Union. Khalifa Bin Salman Port earned recognition as the best small port in the world in the 2023 Container Port Performance Index by the World Bank Group and Standard & Poor’s Global Market Intelligence, improving its ranking by 30 places to 43rd out of 405 ports.