- Bahrain’s economy grew by 3.3% YoY in real terms
- Non-oil sectors accounted for 3.3% while oil sector accounted for 3.4%
- Non-oil contributed 89.5% of Real GDP
Manama – Bahrain: The Ministry of Finance and National Economy has released Bahrain’s Economic Quarterly Report for Q1 of 2024 on its website www.mofne.gov.bh. The report shows continued momentum in the non-oil economy, driven by strong growth in key sectors, in line with Bahrain’s broader economic plan.
The Information and eGovernment Authority (IGA) has updated the National Accounts data to the fourth revision of the International Standard Industrial Classification (ISIC 4) to improve the grouping of all economic activities to be in line with international standards. According to preliminary data from the IGA, the Kingdom of Bahrain’s economy grew by 3.3% YoY in real terms in Q1 of 2024, underpinned by growth in both the non-oil sector 3.3% YoY and oil sector 3.4% YoY. In nominal terms, Bahrain’s GDP grew by 3.4% YoY, with the non-oil sector increasing by 2.8% YoY and the oil sector by 7.4% YoY.
The report highlighted the role of non-oil sectors in driving economic growth, with Bahrain’s non-oil sector accounting for 85.9% of real GDP in Q1 2024. The Accommodation and Food Service Activities led the growth at 10.7% YoY, driven by a 31.7% YoY rise in inbound tourists and a 1 percentage point increase in hotel occupancy rates for 4- and 5-star hotels averaging 50.8% in Q1 2024.
The Financial and Insurance Activities sector recorded the second-highest growth among non-oil sectors, rising by 7.4% YoY. This was reflected in the positive performance of many indicators, including the 14.3% YoY increase in the total value of the Electronic Fund Transfer System (Fawri+, Fawri, and Fawateer) and a 10.9% rise in the assets within the aggregate balance sheet of the banking system.
The Information and Communications sector increased by 6.6% YoY, driven by a 13.8% growth in mobile subscribers and a 3.1% increase in broadband subscribers. Moreover, the Wholesale and Retail Trade sector grew by 5.7% YoY, as the value of Point of Sale and e-commerce transactions rose by 9.0% YoY, and new company commercial registrations were up by 4.5%.
The Transportation and Storage sector grew by 5.3% YoY, driven by an 11% increase in passengers traveling through Bahrain International Airport and a 10% rise in aircraft movements. The Manufacturing sector grew by 3.9% YoY, with production at Bapco Refining and Aluminum Bahrain (Alba) increasing by 25.3% and 1.9% respectively. The Real Estate Activities sector saw a 0.9% YoY growth, with real estate trading values rising by 22.8% and transaction volumes by 12.8%.
The report also highlighted the Kingdom’s performance in global competitiveness reports and indices. Bahrain’s global competitiveness improved, moving up 9 places since 2022 and 4 places since 2023, to rank 21st in the World Competitiveness Ranking 2024 published by the Institute of Management Development (IMD). Moreover, Bahrain’s ranking in the ICT Development Index (IDI) 2024, published by the International Telecommunications Union (ITU), improved by 2 spots to 5th out of 170 countries. The Khalifa Bin Salman Port was also classified as the most efficient small port globally, ranking 43rd out of 405 ports in the Container Port Performance Index 2023 published by The World Bank Group and S&P Market Intelligence.
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