Bahrain’s economy has registered a real growth of 2.73 per cent for the first quarter and 3.43 per cent in current prices over last year supported by the continued non-oil sector growth against the backdrop of the increasing rates of spending on infrastructure projects, according to a report.
These project benefit from the GCC financial support package, which was disbursed in several installments within 5 years to fund major projects such as the Bahrain Airport’s expansion and the development of the Bahrain Petroleum Company and production lines of Aluminum Bahrain, stated the Information & eGovernment Authority (iGA) in its national accounts provisional report.
While the preliminary results showed a significant increase in the quantities of oil produced during the quarter, as the growth of the oil sector is 9.20% in real prices compared to the same period last year (2018).
Besides, the commitment of Bahrain to implement the lowest VAT rate in the world by 5% as of 1 January 2019, has contributed to the non-oil economic growth recorded 1.52% and 2.80% in real and current prices respectively compared to the same period last year.
The report demonstrated that the growing results - compared to the 1st quarter of 2018 in the oil sector have increased by nearly 9.20% at real prices and 7.93% at current prices.
The non-oil GDP grew by 1.52% in real prices and had a comparable growth rate of 2.80%, at current prices. Meanwhile, the financial sector activities witnessed an increase of nearly 3.52% in real prices and 3.41% in current prices.
The report also indicated that the manufacturing sector activities has decreased by 3.10% at real prices and has grown 2.97% at current prices. Construction sector activities grew by 2.86% at real prices and 4.65% at current prices.
Real estate and business service activities grew by 1.27% at real prices and by 1.81% at current prices. While the transportation and communications sector activities increased by 1.49% at real prices and by 2.37% at current prices, stated the iGA report.
The report indicated that social and personal services increased by 1.08% at real prices and had grown by 2.68% at current prices. Electricity and water economic activity has shown a slight decrease by 0.73% at real prices and 0.84% at current prices, it stated.
The private educational services increased by 2.09% at real prices and 1.50% at current prices, while private health services increased by 0.22% at real prices and 1.11% at current prices, said the report.
When comparing the Q1 to the 4th quarter of 2018, the economic growth showcases a decreased as a result of the relative decline in oil production and crude prices hence reducing the oil GDP by 8.36% and 14.39% at real and current prices, respectively.
The real non-oil GDP in Q4 2018 recorded a decline by 1.21% at real prices and 0.31% at current prices.
The report also indicated that the financial sector activities witnessed a slight increase of nearly 0.05% in real prices and 0.36% in current prices, said the report.
The construction sector grew by 0.94% Furthermore the transport & communication sector has shown a slight increase by 1% growth in real prices and 1.19% in current prices.
According to the report, real estate and business sector has a shown a slight decrease by 0.56% at real prices and improved by 0.51% at current prices.
Furthermore, activities like the manufacturing industry activities has noted a decline of 3.36% at real prices and increased by 2.95% at current prices, said the iGA report for the first three months of 2019.
Government services social and personal services activities have also shown a decrease at real and current prices, it added.-TradeArabia News Service