Economy posts 3.4 per cent growth in the fourth quarter

Manama : The Kingdom’s economy recorded  an annual real GDP growth rate of 3.4 per cent in the fourth quarter of 2017, the Information & eGovernment Authority (iGA) said in a report yesterday. The annual nominal GDP recorded a growth of 8.7 per cent during the period compared to the same period of the previous year. 

According to the report, the Bahraini economy is witnessing a positive consistency in the economic growth rate for non-oil sectors due to massive increase in the pace of economic diversity through the increasing investments in the infrastructure which has contributed in attracting major international companies such as Amazon Web Services – demonstrating the strength of the financial situation in the Kingdom owing to efforts exerted by the government in developing the national economy to achieve Economic Vision 2030. 

The report demonstrated that the results of growth compared to the fourth quarter of 2016 rates in the oil sector have increased by nearly 21.4 per cent at current prices and 1.3 per cent at constant prices. Non-oil sector increased by 3.8 per cent and 7 per cent, respectively, at constant and current prices. The report also indicated that the financial corporations witnessed an increase of nearly 1 per cent in constant prices and 3.7 per cent in current prices.

Due to increase in production regarding quantities and prices of major industrial commodities in Bahrain, compared to the 4th quarter of 2016, the manufacturing industry has grown by 1.1 per cent at constant prices and 11 per cent in current prices. 

Construction sector grew by 1.9 per cent at constant prices and 12.8 per cent at current prices. Real-estate and business activities grew by 7.6 per cent at constant prices and by 5.3 per cent at current prices. While the transportation and communications sector decreased by 0.4% at constant prices and increased by 3.7 per cent at current prices. 

The report indicated that Social and personal services increased by 10.6 per cent at constant prices and 6.8 per cent at current prices. Electricity and water activities grew by 4 per cent at constant prices and 4.8 per cent at current prices. 

The report indicates that private and government educational services rose by 3.8 per cent at constant prices and 2.9 per cent at current prices, while health services increased by 8.9 per cent at constant prices and 4.2 per cent at current prices. As for agricultural activity and fishing, it decreased by 0.9 per cent in constant prices and 1.5 per cent in current prices. 

The report clarified that the results of the fourth quarter of 2017 compared to the third quarter of the same year indicates that the economy has decreased by 2.8% in constant prices and 0.1 per cent in current prices. The oil sector recorded a decrease of 14.6 per cent in constant prices and 0.1% in current prices. The non-oil sector witnessed a slight decrease by 0.01 per cent and 0.1 per cent, respectively, at constant and current prices. 

The report also indicated that the financial corporations witnessed a slight decrease of nearly 1.1 per cent in constant prices and 1 per cent in current prices. Construction sector grew by 2.2 per cent at constant prices and 2.7 per cent at current prices. The value-added in the real-estate sector demonstrated that the sector improved by 3.9 per cent at constant prices and 1.8% at current prices. Results shows that the transportations and communications sector decreased by 5.3% growth in constant prices and 5.6 per cent in current prices. 

According to the report, manufacturing industry achieved growth of 0.6 per cent in constant prices and 0.5% in current prices. Government services increased by 0.3% at constant prices and 0.2 per cent at current prices. While other social and personal services increased by 3% at constant prices and 2.3 per cent at current prices. 

Additionally, electricity and water activity witnessed a decrease in 5.6 per cent in constant prices and 6.7 per cent in current prices. Government and private education services have shown a rise of 0.9 per cent in constant prices and 0.8 per cent in current prices. In addition, government and private health services increased by 2 per cent at constant prices and 1.7 per cent at current prices. Agriculture and fishing activities raised by 6% at constant prices and 5.1 per cent at current prices.