Bahrain’s Ministry of Finance and National Economy: Economic performance during the second quarter of 2019 reflects the resilience of Bahrain’s diversified national economy

Manama, The Ministry of Finance and National Economy has published the Q2 2019 Bahrain Economic Quarterly report for the Kingdom of Bahrain through its website today. The report includes the latest economic data, indicators and economic forecasts for the Kingdom of Bahrain, as well as global and regional economic analysis.

Total real GDP recorded during Q2 2019 was BHD 3.24 billion, an increase of 0.8 percent compared to the same period in 2018, and the highest quarterly figure to date. In addition, Q2 2019 saw a 3.4 percent real GDP expansion compared with Q1 2019, a clear sign of both the resilience of the Kingdom’s economy and continued market confidence in the government’s fiscal consolidation efforts. Bahrain’s real non-oil sector annual growth stood at 1.2 percent for the quarter.

The Kingdom’s hotels and restaurants sector continued its expansion during the period, growing by 8.7 percent compared with Q2 2018. As for the tourism sector, hotel occupancy rates of 5-star hotels reached 50 percent over the first half of 2019 compared to 48 percent during the same period in 2018.

Furthermore, the total number of visitors arriving through Bahrain’s International Airport increased by 4 percent while the total number of tourist nights increased by 10 percent from last year.

The construction, and transportation and communication sectors saw strong growth, registering year-on-year expansion of 4 percent and 3.4 percent, respectively, helped by the portfolio of infrastructure projects and the positive performance of Gulf Air during the first half of 2019.

The financial services sector grew by 2.6 percent supported by the strong performance of the banking and insurance sectors. According to the data published by the Central Bank of Bahrain, money supply (M3) increased by 9.2 percent between Q2 2019 and Q2 2018 while non-bank deposits and the total value of outstanding loans and credit facilities provided by retail banks increased by 10.2 percent and 7.4 percent, respectively.

The financial services sector led in terms of its contribution to the GDP, with a share of 16.4 percent followed by the manufacturing sector with a 14.1 percent share and the government service sector with a 13.3 percent share.

Bahrain’s economic performance during the second quarter of 2019 was further bolstered by sustained levels of infrastructure investment. In fact, Q2 2019 saw a number of key strategic projects realise major milestones; including the ramping-up of Alba’s Line 6 and the Bapco Modernisation Program reaching the 25 percent completion mark.

Source: Bahrain News Agency