Bahrain records 2% jump in GDP on back of expansion in Q1 in non-oil sector

Manama, Bahrain–Bahrain has recorded a two percent rise in gross domestic product in the first quarter of 2023, driven by a 3.5 percent jump in the non-oil sector.

The average quarterly increase, according to the Bahraini Ministry of Finance and National Economy, of the annual non-oil GDP has touched about 5.7 percent since implementing its Economic Recovery Plan in October 2021.

The plan looks to stimulate growth, attract investments and create job opportunities.

The non-oil economic sectors, according to the report, experienced positive annual growth, with the transportation and communications sphere posting the highest growth rate of 11.2 percent.

The increase was backed by the expansion of several sector indicators, including the 42.3 percent increase in arrivals through Bahrain International Airport and the 32.1 percent rise in total aircraft movement. 

Real estate and business activities, financial corporations, hotels and restaurants and trade all grew between 4.2 percent and 5.3 percent.   

The country’s manufacturing contracted by 1.1 percent, whereas construction shrunk by 1.3 percent in the first three months of 2023.  

The report showed that the oil sector witnessed a 5.9 percent drop due to the cutback in production brought about by seasonal maintenance. 

The quarterly average price of Brent crude between January and March dropped by 20.6 percent to $81.07. Oil amounted to almost 15 percent of the country’s GDP.   

The report, however, expects real GDP to increase by 2.9 percent in 2023 as the non-oil sector grew by 3.5 percent and the oil sector remained stable. 

It added that the country will witness a growth rate of 3.2 percent.   

In its annual economic report released in March, the ministry reported a growth rate of 4.9 percent in 2022, the highest economic growth pace since 2013. 

The document also highlighted that Bahrain was steadily progressing in its economic diversification journey, as its non-oil real GDP witnessed 6.2 percent growth in 2022, the highest since 2012.    

Bahrain’s non-oil GDP growth in 2022 also surpassed the 5 percent annual target set by its economic recovery plan.