October 07, 2015
Manama: Bahrain’s non-oil sector is on target to grow by 4.6% this year according to the latest Bahrain Economic Quarterly issued by the Bahrain Economic Development Board (EDB). Overall growth is expected to reach 3.6% with output in the oil sector forecast to be flat.
The transport and communications sector led the way, reporting a year-on-year growth rate of 6.7%, whilst the construction sector and the social and personal services sector were also amongst the strongest performers, with year-on-year growth of 6.4%, and 6.2% respectively for the Q2 period. The non-oil sector has been supported by strong credit growth with an increase in lending from an annual rate of 5.7% in June to 7.7% in July.
Alongside a strong performance in the non-oil sector, the economy also saw positive progress in diversification of exports, with high regional demand for non-hydrocarbons products.
The report also highlighted the positive performance of the Bahrain labour market, which showed an unemployment rate of 3.1% in June, the lowest point reached in several years. The low rate mirrors the recent resilience of the non-oil economy, and the build-up of large infrastructure projects in the Kingdom, which are helping to spur growth in the construction, manufacturing and real estate sectors.
Mr Khalid Al Rumaihi, Chief Executive of the EDB, commented on the findings of the BEQ report: “The robust growth in many sectors of the non-oil economy shows that despite the challenging global environment, Bahrain is thriving.
“Concerted efforts to diversify Bahrain’s economy have seen the share of GDP accounted for by oil and gas fall from more than 40% in 2000 to around a fifth today. This diversification means that our economy is able to continue to grow and create jobs, even when facing considerable headwinds. This growth continues to be underpinned by strong fundamentals – the region’s highly supportive demography, ongoing economic diversification and the increasing integration of the Gulf into global trade and travel flows.”
The full report can be downloaded from the link:
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