Bahrain Economy Achieves Real Growth Rate of 6.95%
27 Sep 2022
According to a report issued by the Information & eGovernment Authority (iGA) on the estimates of National Accounts for the second quarter (Q2) of 2022, the Gross Domestic Product (GDP) of the Kingdom of Bahrain grew by 6.95% in real prices and 22.87% at nominal prices, compared to the second quarter of 2021. This economic growth is mainly attributed to higher growth in the non-oil sector, which reached 9.05% in real prices and 17.83% at nominal prices. During the same period, the oil sector declined by an average of 2.20% at real prices due to lower production. However, it increased significantly by 51.66% at nominal prices compared to the same quarter of 2021, due to the positive price effect.
The report revealed that Hotels and Restaurants led in growth with 18.13% and 25.55% in real and nominal prices respectively, reflecting a significant recovery in the tourism sector, where the recovery rate reached 82% compared to the pre-pandemic period (specifically with the second quarter of 2019) based on the latest Ministry of Tourism statistics.
Transportation and Telecommunications grew by 15.12% at real prices and 5.94% at nominal prices, Manufacturing recorded an increase of 7.63% and 49.78% at real and nominal prices respectively, and Other Government Services grew by 7.57% rate at real prices and 4.33% at nominal prices.
Trade grew by 7.51% at real prices and 2.66% at nominal prices, while Educational Services had a growth rate of 6.81% and 7.79% at real and nominal prices respectively. The results also showed an increase in Agriculture and Fishing by 5.78% in real prices and 1. 02% at nominal prices.
Real estate and Business services grew by 4.49% at real prices and 3.27% at nominal prices, whereas Financial Services recorded an increase of 3.56% at real prices and 4.38% at nominal prices. Other Social and Personal Services achieved a growth rate of 2.79% at real prices and 4.08% at nominal prices.Construction was estimated to have grown by 2.60% at real prices and 5.09% at nominal prices.
Economic performance for the second quarter of 2022 improved in comparison with the first quarter of the same year, growing by 5.03% in real prices and 8.31% at nominal prices. The report’s results also showed an increased growth rate in the oil sector by 10.69% and 26.64% and the non-oil sector by 3.93% and 4.88% at real and nominal prices respectively.
Total Educational Services grew by 29.75% and 30.83% in real and nominal prices; followed by Mines and Quarrying, which increased by 10.46% at real prices and 25.41% at nominal prices; Electricity and Water by 10.45% at real prices and 3.21% at nominal prices; and Trading activities, which recorded a growth rate of 7.66% and 1.28% at real and nominal prices respectively.
The results showed an increase of 3.13% at real prices and 7.81% at nominal prices in Manufacturing, while Health Services grew by 1.75% and 1.87% at real and nominal prices, respectively.
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