Bahrain’s economy grew by 6.9% in the second quarter of 2022 to register the highest growth rate in the past 11 years, driven by a strong performance in the country’s non-oil sectors which were targeted in the part of the country’s economic reform plan.
Data from the Ministry of Finance and National Economy shows that non-oil growth was led by the Gulf country’s hotel and restaurant sector, which grew 18.1% from the second quarter. of 2021, the state-run Bahrain News Agency reported on Sunday.
The transport and communications industry jumped 15.1% and the manufacturing sector 7.6%, boosted by an increase in the total production of the Bahrain Petroleum Company, the Bahrain Natural Gas Company and Aluminum Bahrain, the agency said.
“The report showed positive economic growth driven by the good performance of non-oil sectors according to the positive results in all the sectors targeted by the economic recovery plan,” the ministry said on its website.
Bahrain’s economy, the smallest in the six-member GCC bloc, has been looking for ways to cut spending and achieve a balanced budget by 2024.
He unveiled an economic reform plan last year that aims to invest around $30 billion in projects to boost post-pandemic growth, boost jobs for citizens and attract $2.5 billion in investment. foreign direct by 2023.
The government has also adopted cost rationalization measures, including raising the value added tax to 10% to help the kingdom balance its budget by 2024.
In August, Bahrain posted a first-half surplus of $88 million and recorded a 52 percent annual increase in revenue, the Ministry of Finance and National Economy said.
Revenue for the January-June period was nearly 1.7 billion Bahraini dinars ($4.5 billion), compared to 1.1 billion dinars in the same period last year.
As Bahrain’s economy posted strong growth of 5.5% in the first quarter of the year, the mid-year financial report is a further indication of the kingdom’s financial recovery from Covid-19, the official said. ministry at the time.
Meanwhile, Bahrain’s commercial sector grew by 7.5% in the second quarter of this year, reflecting an increase in the value of point-of-sale transactions and e-commerce, the ministry said.
“The utilities sector grew by 7.1% in real terms, while real estate and commercial activities increased by 4.5% on an annual basis, supported by the increase in the number of real estate transactions registered with from the cadastre and cadastre office. ,” It said.
Updated: September 25, 2022, 4:10 p.m.