EDB Releases Latest Bahrain Economic Quarterly
Manama, Economic Development Board, 12 January 2015:
The
Bahrain Economic Development Board (EDB) said that the Kingdom’s Q3 GDP
growth reached 5.1% year-on-year (YoY), which continues the momentum
from earlier in 2014 and reflects the positive
impact of the
initiation of a number of significant infrastructure projects. Overall
growth for 2014 is forecasted to have been in excess of 4%.
The
latest Bahrain Economic Quarterly (BEQ) also highlights the resilience
of Bahrain’s non-oil growth. This was particularly apparent
in the construction sector, which experienced acceleration from 3.6%
annual growth in Q2 to 12.3% in Q3, making it the fastest growing sector
of the economy.
The hotels and restaurants sector also posted strong YoY growth of 7.4%. The hydrocarbons sector in Bahrain has continued to expand throughout
the year, with a 4.7% YoY gain in Q3.
Looking forward, the BEQ posits that
the performance
of the Bahraini economy in the near term is likely to benefit from a
number of positive drivers, which should translate into robust near-term
growth figures. Above all, the build-up in infrastructure
spending will continue. Spending from the Gulf Development Fund will be
the main driver in this regard, but initiatives are underway also to
activate a number of significant priority projects that will draw on a
range of funding sources, including private
investment.
Dr Jarmo Kotilaine, Chief Economist at the EDB, said:
“In
spite of increased volatility in the global oil markets, economic
growth in Bahrain has
remained robust with clear indications that infrastructure spending is
significantly boosting the momentum in the non-oil sector, and serving
as an important platform for continued resilience.”
Globally, the structural growth drivers have not yet recovered to the point of strong, broad-based momentum,
and the pattern of growth across various countries remains uneven. The BEQ shows that
growth dynamics across the GCC region continue to be
characterized by strong structural drivers in the non-oil economy
alongside modest growth in the oil economy. The resilience of the
non-oil economy is further supported by healthy financial sectors
along with a firm commitment by GCC governments to support economic
activity and priority projects.
The Bahrain Economic Quarterly can be viewed directly on:
http://www.bahrainedb.com/en/
