According to the Bahrain Economic Quarterly, the non-oil sector of the Kingdom reached a growth of 4.4 percent in the first quarter of 2017, up from 3.7 percent during 2016. During the first three months of the year, the domestic economy expanded by 2.9 percent, compared to 3 percent in the same period last year. The excellent performance of the non-oil private sector as well some large-scale infrastructure project contributed to the positive statistics.
The first three months of 2017 witnessed a remarkable growth in the hospitality industry, financial services, transportation, and communications. The HoReCa industry turned into the fastest growing sector, achieving 12.3 percent year-on-year rate of expansion. The financial services kept up the good work from last year and posted an annual expansion of 8.3 percent, compared to the 5.2% during same period in 2016. The transportation and communication industries also performed well, marking an annual growth of 8.2 in Q1.
In addition to that, Bahrain is now experiencing a boom in large infrastructure projects. The Kingdom is investing over USD 1.1 billion in the airport rehabilitation program. Next to that, it is now constructing the largest single-site aluminum smelter and a new Bangas gas plant, valued at USD 335 million.
Dr. Jarmo Kotilaine, chief economic adviser of the Bahrain EDB, commented:
As the region continues its transition in a low oil price environment, Bahrain offers further encouraging indications both of its resilience and the progress of diversification.
The Q1 growth rates are positive and mirror the efforts of the government to boost the economy and invest in infrastructure.
You can watch the interview with Jarmo Kotilaine here