Growth springs to life

Non-oil economy registers strong growth of five per cent, says EDB report

Manama 

Bahrain’s non-oil growth came in noticeably above projections in the first quarter of 2015 in the latest Economic Quarterly (BEQ) issued by the Economic Development Board (EDB) yesterday. Growth in the non-oil economy, which constitutes more than 80 per cent of Bahrain’s GDP, saw strong growth in a number of sectors, reaching five per cent.

The report also highlighted broad-based real GDP growth of 2.9 per cent on an annual basis and strong labour market activity, with employment increasing by five per cent compared with the same period last year. The social and personal services sector grew by 8.3 per cent year-on-year, overtaking the hotels and restaurants sector as the fastest-growing sector.

 The social and personal services sector is primarily made up of private sector healthcare and education activities. The manufacturing sector also saw 5.9 per cent year-on-year growth.

 Despite global economic challenges, the report finds that forward-looking indicators point to a high degree of continuity in the regional non-oil economy, reflecting the strength of key structural growth drivers and the commitment of regional governments and investors to long-term projects.

 Strong growth of 7.5 per cent year-on-year was reported in the construction sector, which is in line with the sector’s momentum that became apparent in the second half of last year and reflects continued infrastructure activity. Growth in the transport and communications sector followed closely with a 7.3 per cent year-on-year expansion.

 Khalid Al Rumaihi, Chief Executive of the EDB said: “The report highlights the strong performance of Bahrain’s non-oil sector, with growth coming in above our projections. This reflects Bahrain’s diversification efforts over the past decade and the general resilience of the GCC economies at a time of doubts about the global recovery.”

  “Even as Bahrain’s hydrocarbons sector experiences a decline due to seasonal maintenance, headline real GDP expanded by 2.9 per cent and we continue to project robust growth throughout 2015 and 2016,” he explained.