RIYADH: Growth in Bahrain’s non-oil sectors boosted its economy by 1.3 percent year-on-year, reaching 3.7 billion dinars ($9.8 billion) in the second quarter of this year, according to newly released figures.
Issued by the country’s Ministry of Finance and National Economy, citing preliminary data from the Information and eGovernment Authority, the newly released report shows that non-oil gross domestic product grew by 2.8 percent during the period and contributed more than 85 percent to the overall GDP.
The analysis further indicated that the Gulf country’s overall GDP was affected by a 6.7 percent decline in the oil sector’s GDP compared to the same period last year.
The rise reflects Bahrain’s diversification efforts, aligning with the country’s Economic Vision 2030, a comprehensive development plan to transform the economy.
Being one of the most indebted economies and a small oil producer in the region, Bahrain has introduced reforms to facilitate doing business, create more jobs, and attract foreign investment to boost economic growth.
The Ministry of Finance expects Bahrain’s economy to grow by 3 percent in 2024, driven mainly by non-oil sectors as the government accelerates efforts to diversify sources of income and economic sectors away from hydrocarbons.
The growth will be driven primarily by a diverse range of non-oil activities, which is forecasted to expand by 3.8 percent during this year.
Looking ahead to 2025, real GDP growth is projected to accelerate to 3.8 percent. The non-oil activities are anticipated to experience an even stronger expansion of 4.5 percent during 2025, as expected progress around the Bapco Modernization Program will be fully seen.
The program’s objective is to increase refining capacity and improve energy efficiency, with a vision of becoming one of the most competitive and environmentally compliant oil refineries regionally, providing a solid foundation for realizing the country’s Vision 2030.
Bahrain’s real GDP grew by 3.3 percent year on year in the first quarter of 2024, according to a government report released at the time.
National accounts estimates issued by the Information and eGovernment Authority at the time showed that the Gulf state’s non-oil GDP rose by 3.3 percent during that period, contributing about 85.9 percent of GDP.
The report added that oil GDP grew 3.4 percent, with accommodation and food services, financial activities, and insurance among the best-performing sectors.
The economies of the Gulf Cooperation Council countries have demonstrated positive performance in non-oil activities during the year despite the global challenges, while oil activities declined due to supply cuts implemented by OPEC+. However, factors such as interest rate cuts and the gradual increase in oil production are expected to persist in GCC countries.
