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Bahrain’s Q1 GDP up 3.3% fueled by non-oil sector growth

Non-oil economy increased 3.3 per cent in the January-March period, contributing almost 85.9 per cent to overall GDP

August 6, 2024

Bahrain’s Q1 2024 GDP expands by 3.3% YoY

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Bahrain’s real gross domestic product (GDP) grew by 3.3 per cent year-on-year (YoY), according to a quarterly economic performance report by the Ministry of Finance, driven by robust growth in the key sectors of the non-oil economy.

The latest data from the ministry shows that non-oil economy increased 3.3 per cent in the January-March period, contributing almost 85.9 per cent to overall GDP.

The Gulf state’s oil GDP grew 3.4 per cent, the report indicated, with accommodation and food services, and financial services and insurance among the top performing sectors.

The hospitality sector led the growth at 10.7 per cent, driven by a 31.7 per cent YoY rise in inbound tourists and a one-percentage-point increase in hotel occupancy rates for 4- and 5-star hotels, which averaged 50.8 per cent.

Similarly, the transportation and storage sector grew by 5.3 per cent, driven by an 11 per cent increase in passengers travelling through Bahrain International Airport and a 10 per cent rise in aircraft movements.

The manufacturing sector also grew by 3.9 per cent, with production at Bapco Refining and Aluminum Bahrain (Alba) increasing by 25.3 per cent and 1.9 per cent, respectively.

Bahrain’s economic growth is projected to accelerate in 2024, following a slowdown last year, driven by vigorous activity in the non-oil sector, as the Gulf state makes a push toward a sustainable and more diversified economic future.

The finance ministry projects that the country’s economy will expand by 3 per cent in 2024, driven mainly by non-oil sectors, as the government accelerates efforts to diversify income sources and economic sectors away from hydrocarbons.

Bahrain, among the Middle East’s more indebted economies and smaller oil producers, has introduced reforms to make doing business easier, create more jobs, and attract foreign investment to boost economic growth.