Bahrain’s Economy Shows Resilience with 2.4% Growth, Official Data Shows

Bahrain’s economy registered an annual increase of 2.4% in 2023 to hit 13.66 billion dinars ($36.24 billion), driven by financial project expansions, official data showed.

Bahrain’s Economic Diversification Efforts

The rise reflects Bahrain’s diversification efforts, aligning with the country’s Economic Vision 2030, a comprehensive development plan aimed at transforming Bahrain’s economy.

Performance of Bahrain’s Non-Oil Sectors

The non-oil sector in Bahrain recorded a growth of 4.03% at constant prices and 3.89% at current prices. Comparing the final quarter of 2023 with the corresponding quarter of 2022, Bahrain’s GDP showed positive growth, estimated at 3.45% and 3.36% at constant and current prices, respectively.

Growth in Bahrain’s Key Economic Sectors

The sectors with the highest non-oil growth in Bahrain were the hotels and restaurants sector, with a growth rate of 8%, followed by government services with a growth rate of 6%, and financial projects with a rate of 5.7% at constant prices.

Investment and Job Creation in Bahrain’s Economy

Investments in financial services helped Bahrain register a 55% year-on-year increase in funding during 2023, securing a record $1.7 billion across its economy. This “massive influx” generated by the country’s Economic Development Board stemmed from 85 local and international projects, which are projected to generate more than 5,700 jobs over three years.

Quarterly Performance of Bahrain’s Economy

On a quarter-on-quarter basis, Bahrain recorded a real growth in GDP by an estimated rate of 4.61% in the final three months of 2023. This is primarily attributed to the rise achieved by Bahrain’s non-oil sector, which grew by 5.14% at constant prices and 6.19% at current prices.

The positive economic indicators and Bahrain’s diversification efforts suggest that the country’s economy is showing resilience and aligning with its long-term vision for economic transformation.