Hospitality, construction sectors fuel economic growth in second quarter
The Information and eGovernment Authority (iGA) has issued its report of the provisional national accounts results for the second quarter of 2019 which indicated that the economy recorded a real growth of 0.84 per cent and 1.76pc in current prices compared to the same period of the previous year. According to the report, the Kingdom of Bahrain continued to achieve a balanced growth across its diversified economy; achieving economic growth in the second quarter of 2019 supported by the growth in the nonoil sectors.
The national accounts report showed a growth in non-oil sectors, including the financial sector, which recorded the highest contribution to GDP by 16.43pc, supported by profits of the growth of financial institutions and insurance sector. The report demonstrated that - compared to the second quarter of 2018, the oil sector GDP saw a decline by 0.8pc in real prices and 5.75pc at current prices in line with current global oil market conditions. The non-oil GDP grew by 1.21pc in real terms and had a comparable growth rate of 3.16pc at current prices.
The report also indicated that the hotels and restaurants sector achieved the highest growth rate by 8.66pc and 10.65pc at constant and current prices, respectively. The construction sector grew by 3.96pc at constant prices and 4.51pc at current prices while the transportation and communications sector increased by 3.43pc at constant prices and by 8.72pc at current prices. Meanwhile, the financial corporations witnessed an increase of nearly 2.62pc in constant prices and 2.78pc in current prices. The private educational services rose by 2.44pc at constant prices and 2.32pc at current prices, while health private services increased by 3.24pc at constant prices and 3.27pc at current prices.
The report indicated that other social and personal services increased by 0.32pc at constant prices and 3.15pc at current prices. Electricity and water activities grew by 0.26pc at constant prices and 0.05pc at current prices. The manufacturing industry dropped by 0.48pc at constant prices and grew by 5.51pc in current prices while real estate and business activities recorded a decline by 4.69pc at constant prices and by 3.28pc at current prices. When comparing the second quarter with the first quarter of 2019, economic growth slightly increased by 3.39pc and 4pc at constant and current prices, respectively.
The real non-oil GDP recorded a growth by 1.83pc while achieving a growth of 1.92pc in current prices. Oil sector improved by 11.1pc at constant and 18.12pc at current prices. The report also indicated that the financial corporations witnessed a slight increase of nearly 0.44pc in constant prices and 0.67pc in current prices. The construction sector grew by 1.76pc at constant prices and 0.41pc at current prices; moreover, trading sector increased by 0.47pc at constant prices and 2.02pc at current prices. Real estate and business service sector demonstrated growth by 0.90pc at constant prices and by 1.01pc at current prices.
Results also show that the transportations and communications sector increased by 4.12pc growth in constant prices and 8.11pc in current prices. Furthermore, the manufacturing sector achieved growth of 2.95pc in constant prices and decreased by 0.89pc in current prices. Government services increased by 7.77pc at constant prices and 8.25pc at current prices while other social and personal services increased by 0.61pc at constant prices and 1.09pc at current prices.
Additionally, electricity and water activities witnessed an increase of 8.19pc in constant prices and 8.12pc in current prices. In contrast, the hotels and restaurants sector saw a decline of 3.86pc and 2.97pc at constant and current prices, respectively.