Bahrain’s Finance and National Economy Ministry released Bahrain’s Q1 2023 economic report. The report highlights Bahrain’s economic indicators, strategic projects, and performance in global competitiveness indices. Based on preliminary national accounts data from the Information and eGovernment Authority, Bahrain’s gross domestic product (GDP) expanded by 2 percent at constant prices year-on-year, driven by a 3.5 percent growth in the non-oil sector.
Read more: Bahrain posts biggest annual GDP increase since 2011
Economic recovery plan
The economic recovery plan has yielded an average quarterly growth rate of approximately 5.7 percent for the GDP since its implementation. The non-oil economic sectors have also shown positive growth at constant prices on an annual basis, with the transportation and communications sector leading the way with a growth rate of 11.2 percent. This was aided by various sector indicators such as a 42.3 percent increase in the number of arrivals at Bahrain International Airport and a 32.1 percent increase in total aircraft movement.
Broadband subscriptions also increased by 5 percent. The real estate activities and business services sector grew by 5.3 percent, supported by an increase in the value of real estate trading transactions. The sector recorded the highest contribution to the GDP for the second time in a row, with its contribution reaching 17.9 percent, surpassing the oil sector. The indicators showed an increase in the value of electronic financial transfers by 17.6 percent, and the total value of bank deposits from nonbanks grew by 5.9 percent, as well as an increase in the total value of loans extended to residents – excluding banks – by about 4.3 percent.
As for the hotels and restaurants sector, it recorded a growth of 4.3 percent, and the total number of visitors through all outlets witnessed an increase of 71.9 percent, and the increase in hotel occupancy was about 8.4 percent.
The trade sector recorded a similar growth rate of 4.2 percent, and the statistics of inbound and outbound trucks through the King Fahd Causeway indicate a growth of 16 percent, while new commercial registrations for companies increased by about 10.8 percent.
The government services sector grew by 3.5 percent. The social and personal services sector grew by 1.1 percent, while the manufacturing sector witnessed a decline of about 1.1 percent. As for the building and construction sector, it recorded a decline of 1.3 percent.
Projects worth $25 million
In terms of development projects funded via the Gulf Development Program, which continued its progress with awarding projects worth $25 million, bringing the total value of projects awarded to about $6.14 billion since the launch of the scheme, up by 2.1 percent on an annual basis. During the first quarter of 2023, several contracts were awarded for the Sports City project and the dialysis center project.
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