MANAMA: Bahrain’s economic trajectory has continued on the upswing in Q2 2022, with growth recorded in the non-oil sectors, as per the kingdom’s primary business owners’ association.
The Bahrain Chamber, which includes all registered businesses as members, released its ‘Q2 2022 Overview of the Local Economy’ report yesterday highlighting an increase in the volume of trade between Bahrain and the rest of the GCC countries in the first half of 2022 when compared with the same period last year.
Commenting on the findings of the report, chairman Sameer Nass told a Press conference at the Bahrain Chamber headquarters that government initiatives have largely contributed to the economic recovery in Bahrain.
He added it was notable that 16 of the Economic Recovery Plan’s 27 programmes had already been implemented.
Announced late last year, the plan includes an investment outlay of about $30bn in projects to drive growth, boost employment for citizens and attract $2.5bn in foreign direct investment by 2023.
This includes major initiatives such as the launch of the Golden Residency Visa, which is designed to attract investors, said Mr Nass.
Real GDP (adjusted for inflation) and nominal GDP increased by 5.5pc and 19.7pc, respectively, in Q1 2022 year-on-year, led by growth in the hotels and restaurants and transport and communication sectors.
The recovery in oil and aluminium price contributed to the improved economic performance, the report said.
The price of a barrel of global benchmark Brent crude oil increased by 46.6pc to $111.63 per barrel in July 2022 compared to $76.17 per barrel in July 2021.
The non-oil GDP grew by 7.8pc in constant prices in Q1 2022 and 16.2pc in current prices.
The hotels and restaurants sector achieved the highest real growth rate at 26.6pc in Q1 2022 on an annual basis, led by a significant recovery in the tourism sector in the kingdom.
The transportation and communication sector also witnessed an improvement, with a growth rate of 15.8pc.
The manufacturing sector grew by 5.3pc, and the real estate and business services sector grew by 4.7pc.
The financial corporations sector, which is the largest non-oil contributor to real GDP, grew by 3.1pc on an annual basis.
The finance and insurance sector was the top contributor to GDP in Q1 2022 at 17.39pc, followed by crude oil and natural gas at 16.18pc and manufacturing at 14.18pc.
The real GDP contribution levels across sectors are generally consistent over the past two years, but it is notable that the GDP contribution of the crude oil and natural gas sector has decreased from 17.92pc in Q1 2021 to 16.18pc in Q1 2022.
This is due to successful diversification efforts, and growth in the non-oil sectors.
The number of employees in both the private and public sectors increased, and this includes both Bahrainis and non-Bahrainis.
Affirming Bahrain’s increased competitiveness and business friendly environment, foreign direct investment (FDI) inflows increased by 73pc to $1.77 billion in 2021.
The kingdom has also ranked well in various global indicators, including the IMD World Competitiveness Yearbook 2022, the Travel and Tourism Development Index 2021, and the 2022 Global Start-up Ecosystem Report.
Bahrain Chamber executive committee member Bassim AlSaie, vice-treasurer Waleed Kanoo and board member Sonya Janahi also spoke during the Press conference.
avinash@gdnmedia.bh
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