Annual real growth reaches 1.6 per cent in third quarter

The Ministry of Finance and National Economy yesterday published the Q3 2019 Bahrain Economic Quarterly report for the Kingdom of Bahrain on the Ministry’s website. The report is a quarterly review and outlook on global, regional and local economic and market trajectory.

Pro-growth initiatives as part of Bahrain’s Economic Vision 2030 continue to help further diversify the Kingdom’s economic base and support non-oil growth, which rebounded to 2 per cent in Q3 from the (revised) 0.5pc growth rate seen in Q2. The private sector grew by 1.6pc in the third quarter of 2019 from a (revised) 0.3pc in Q2, while the oil sector contracted by 0.1pc as production held steady.

A number of sectors recorded impressive growth in Q3. The transportation and communication sector, supported by Gulf Air’s route expansion, led growth at 6.4pc year on year (YoY). The hotels and restaurants sector also grew strongly at 6.3pc YoY, as did the manufacturing sector at 4.1pc YoY, bolstered by the launch of Alba’s Line 6.

Furthermore, the total number of visitors arriving through Bahrain’s International Airport saw a 2.9pc increase to just over 800,000, while the occupancy rate at 5 and 4 star hotels reached 51pc and 48pc, respectively. Additionally, the average number of stay nights rose to 63pc.

Infrastructure investments bolstered growth. Bahrain welcomed the launch of a national broadband network ‘BNET’, the signing of a USD 2.9 billion contract with Saudi Arabia for the transitional phase of the King Hamad Causeway, as well as the approval of electricity and water network expansion projects valued at BD 615 million.

The report also highlights the progress made by Bahrain towards accelerating investment-driven development, as outlined in the World Bank’s Doing Business 2020 report, which has placed Bahrain among the top 10 improvers globally and second among the Arab states – advancing 19 places to 43rd out of 190 economies.

Additionally, Bahrain was ranked 45th out of 189 countries in the Human Development Index (HDI) in the Human Development Report 2019. Also, Bahrain improved five spots and ranked 45th out of 141 countries in The Global Competitiveness Report 2019.