Bahrain’s economic recovery is on track: BCCI
TDT | Manama
The Daily Tribune – www.newsofbahrain.com
The economic recovery trajectory has continued in Bahrain in the second quarter of 2022, with growth recorded in the non-oil sectors, a latest report by the Chamber said.
According to the report by Bahrain Chamber of Commerce and Industry (BCCI), Real GDP and nominal GDP increased by 5.5 per cent and 19.7pc, respectively, in Q1 2022 led by growth in the Hotels and Restaurants and Transport and Communication Sectors.
The recovery in oil and aluminum price contributed to Bahrain’s improved economic performance, and consequently S and P affirmed the Kingdom’s credit rating at B+/B with a stable outlook. The number of employees in both the private and public sectors increased, and this includes both Bahrainis and non-Bahrainis.
Furthermore, the volume of trade has increased between Bahrain and all GCC countries in the first half of 2022 on a year-on-year basis. Government initiatives have largely contributed to the economic recovery in Bahrain, the report said, adding that the Kingdom has completed 16 of the Economic Recovery Plan’s 27 programmes.
“This includes major initiatives such as the launch of the Golden Residency Visa, which is partially designed to attract investors. FDI flows recovered strongly in 2021 in all regions, and there has been a 64pc increase in FDI inflows globally in 2021. In Bahrain, FDI flows increased by 73pc to reach $1.77 billion in 2021.
“Bahrain has been ranked well in various global indicators, including the IMD World Competitiveness Yearbook 2022, the Travel and Tourism Development Index 2021, and the 2022 Global Start-up Ecosystem Report. This is a testament to Bahrain’s increased competitiveness and business friendly environment.”
In Q1 2022, GDP grew by 5.5pc in constant prices and 19.7pc in current prices compared to Q1 2022. The oil GDP contracted by 4.7pc in constant prices, and grew by 42.2pc in current prices. Furthermore, the non-oil GDP grew by 7.8pc in constant prices and 16.2pc in current prices. The Hotels and Restaurants sector achieved the highest real growth rate at 26.6pc in Q1 2022 on an annual basis, led by a significant recovery in the tourism sector in the Kingdom.
The Transportation and Communication sector also witnessed an improvement, with a growth rate of 15.8pc. The Manufacturing sector grew by 5.3pc, and the Real Estate and Business Services sector grew by 4.7pc. The Financial Corporations sector, which is the largest non-oil contributor to real GDP, grew by 3.1pcon an annual basis.
China remained Bahrain’s top import partner in Q2 2022 with a total import value of $623 million. The top imported good was other silicon, with a total value of $52 million. This commodity accounts for 8pc of total imports from China. Brazil was Bahrain’s second largest import partner in Q2, with the total value of imports reaching $456 million.
The top imported commodity was non-agglomerated iron ores and concentrates, valued at $409 million and accounting for 90pc of total imports from Brazil. Australia trailed slightly behind Brazil, with a total import value of $425 million. The top commodity imported was other aluminium oxide at $385 million and it accounts for 91pc of imports from Australia. Total imports from the UAE are valued at $320 million.
The top imported commodity was gold ingots, valued at $77 million. Total imports from India reached $263 million in Q2 2022. The top imported commodity was other polymers, at $25 million. Saudi Arabia has maintained its position as the largest export market for Bahraini commodities in Q2 2022, with the total value of exports reaching $744 million.
The top exported commodity to Saudi Arabia was agglomerated iron ores and concentrates at $192 million, and it accounts for 26pc of total exports. The US was Bahrain’s second largest export partner, with the total value of exports amounting to $572 million.
The top exported commodity was unwrought aluminium alloys at $308 million, accounting for 54pc of exports to the US. Total exports from the UAE amounted to $407 million, making it Bahrain’s third largest export partner.
The top exported commodity was agglomerated iron ores and concentrated at $126 million. Total exports to Oman amounted to $185 million. The top exported commodity was agglomerated iron ores and concentrates at $118 million, and accounts for 63pc of total exports to Oman.
Turkey was Bahrain’s fifth largest export partner in Q2 2022, with the total value of exports reaching $171 million. The top exported commodity was unwrought aluminium alloys at $133 million and it constitutes 78pc of total exports to Turkey.
FDI flows to Bahrain increased by 73pc from $1.0 billion in 2020 to $1.77 billion in 2021, and is 4th among GCC countries in FDI attraction. The UAE received the highest amount of FDI flows among GCC countries in 2021 at $20,667 million, followed by Saudi Arabia at $19,286 million and Oman at $3,619 million.