Non-oil growth accelerates to 4.4pc in Q1
Manama : Bahrain’s growth in the non-oil sector reached 4.4 per cent in the first quarter of 2017, up from 3.7 per cent recorded during 2016, according to latest figures released by Bahrain Economic Development Board (EDB).
“The growth was driven by strong performance across the non-oil sector, with momentum continuing to be supported by large-scale infrastructure projects,” the EDB said in its report published in Bahrain Economic Quarterly.
The economy grew by 2.9 per cent in the first three months of 2017, following the uptick in non-oil sector, which is in line with the 3 per cent pace recorded in 2016 as a whole, the EDB said.
“The first three months of 2017 saw particularly strong growth in the hotels and restaurants, financial services and transportation and communications industries,” the EDB said, adding hotels and restaurants emerged the fastest growing single sector during Q1, posting a 12.3 per cent year-on-year real rate of expansion and financial services continued along its strong growth trajectory reported last year, posting an annual expansion of 8.3 per cent at the end of Q1 compared to 5.2 per cent at the same in 2016. “The transportation and communications sector also performed strongly, with an annual real growth rate of 8.2 per cent in Q1,” the EDB said.
“Underpinning the near term momentum in Bahrain’s non-oil economy is the large amount of investment in infrastructure,” the EDB said.
The Kingdom is pressing ahead with a large number of infrastructure projects to diversify the economy. Major projects among them are: The $3 billion Alba Line 6 project – which will create the world’s largest single-site aluminium smelter; the $ 1 billion airport modernisation programme; and the $335 million Banagas plant expansion.
Expressions of interest have been solicited for the construction of King Hamad Causeway, which will add to the existing King Fahd Causeway, connecting Bahrain to Saudi, serving as a platform for GCC Railway.
“The total worth of GCC Development Fund projects that had broken ground by Q2 of 2017 reached $ 3.2 billion. This is 111.3 per cent increase from Q1 of 2016,” the EDB said.
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