Bahrain's economy has shown robust growth in the first quarter of 2025, with real Gross Domestic Product (GDP) expanding by 2.7 per cent year-on-year, according to the latest data released by the Finance and National Economy Ministry.
The growth was fuelled by significant increases in both the non-oil and oil sectors, which grew by 2.2pc and 5.3pc respectively. This is a key finding in the Bahrain Economic Quarterly Report for Q1 2025, now available on the ministry’s website, www.mofne.gov.bh.
The report, based on preliminary national accounts data from the Information and eGovernment Authority, underscores the crucial role of the non-oil sector, which contributed a substantial 84.8pc to the real GDP during the quarter.
Several key economic activities demonstrated strong performance, with the Accommodation and Food Services sector leading the way with an impressive 10.3pc year-on-year growth. The Financial and Insurance Activities sector, which is the largest contributor to the kingdom’s GDP, also posted a healthy growth rate of 7.5pc in real terms.
Additional sectors contributed to Bahrain’s positive economic momentum during Q1 2025. The construction sector saw a notable growth of 5.4pc, while education expanded by 2.5pc. Professional, scientific and technical activities grew by 2.2pc, with both wholesale and retail trade and real estate activities increasing by 2pc. Growth was also observed in transportation and storage activities at 1.9pc and information and communication activities at 1.4pc.
The only sector to register a slight decline was Manufacturing, which saw a dip of 0.4pc.
In a further sign of economic confidence, the report highlighted a 3.5pc year-on-year rise in Inward Foreign Direct Investment (FDI) stock, bringing the total to a significant BD17.1 billion in Q1 2025.
The report also noted Bahrain’s continued progress in various international economic and development benchmarks, a testament to the kingdom’s commitment to economic diversification, global standards, and enhancing its business environment through ambitious strategies and initiatives.
avinash@gdnmedia.bh
&uuid=(email))