Non-oil sector drives 2.4% Real GDP growth in 2023, report shows

TDT | Manama                                                      

The Daily Tribune – www.newsofbahrain.com

Propelled by a 3.4% growth in the non-oil sector, Bahrain witnessed a 2.4% year-on-year growth in its GDP in real terms in 2023, according to preliminary data released by the Information and eGovernment Authority.

The report also states that the oil sector experienced a yearon-year decline of 2.4%. In nominal terms, Bahrain's GDP experienced a 2.7% yearon-year decline in 2023, predominantly due to a 14.5% yearon-year decrease in the oil sector, influenced by the downturn in global oil prices.

Moreover, the non-oil sector witnessed a marginal dip of 0.2%.

In the fourth quarter of 2023, real GDP recorded a growth of 3.5% year-on-year in real terms.

The non-oil sector expanded by 4.0% year-on-year, while the oil sector saw a 0.5% year-onyear increase compared to the fourth quarter of 2022. On a quarter-on-quarter basis, real GDP increased by 4.6%, with the non-oil sector witnessing an increase of 5.1% quarter-on-quarter.

The oil sector grew by 1.9% compared to the third quarter of 2023.

According to the report, Bahrain’s non-oil sector played a significant role in driving economic growth, leading to a record high contribution to GDP of 83.9% in real terms in 2023.

The Financial Corporations sector maintained its position as the largest contributor to GDP in 2023, accounting for 17.8% of GDP.

The Manufacturing sector comprised 13.6% of GDP, followed by the Government Services sector at 13.3%.

The Transportation and Communication sector constituted 7.4%, with the Construction sector following closely at 7.1%.

The Real Estate and Business Activities sector contributed 5.4% to GDP, while Social and Personal Activities and Trade accounted for 5.2% and 4.4%, respectively.

Additionally, Hotels and Restaurants contributed 1.8%.