Bahrain is a small oil producer and one of the most indebted Gulf states. And in 2018, it obtained a $10 billion rescue package from wealthy neighbors to avert a credit crisis. However, it is one of the most diversified economies in the region.
On the other hand, “the performance of the oil sector declined by 5.9 percent, due to the decrease in oil production rates as a result of seasonal maintenance,” the ministry said in a quarterly report issued late Monday.
The average price of Brent crude fell 20.6 percent on a quarterly basis to $81.07 a barrel in the first quarter. The oil sector accounted for nearly 15 percent of the gross domestic product.
Real GDP growth increased by 11.2 percent, supported by expansion in the transportation and communications sector, with real estate and commercial activities, financial institutions, hotels, restaurants and trade growing between 4.2 and 5.3 percent. While the manufacturing sector contracted 1.1 percent, and the construction sector contracted 1.3 percent.
The report, quoting revised data from the Information and e-Government Authority, said that the real gross domestic product is expected to grow 2.9 percent this year, with the non-oil sector growing by 3.5 percent and expectations of stability in the oil sector. Growth is expected to reach 3.2 percent in 2024.
Preliminary data showed that the Bahraini economy grew by 4.9 percent last year, up from 2.6 percent in 2021. The non-oil sector, which rose by 6.3 percent, supported growth in 2022, while the oil sector contracted by 1.4 percent.
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