Bahrain economy achieves real growth rate of 6.95% during Q2/2022 Compared to Q2/2021

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Manama, Sept. 26 (BNA): According to a report issued by the Information and eGovernment Authority (iGA) on the estimates of National Accounts for the second quarter (Q2) of 2022, the Gross Domestic Product (GDP) of the Kingdom of Bahrain grew by 6.95% in real prices and 22.87% at nominal prices, compared to the second quarter of 2021.

This economic growth is mainly attributed to higher growth in the non-oil sector, which reached 9.05% in real prices and 17.83% at nominal prices. During the same period, the oil sector declined by an average of 2.20% at real prices due to lower production. However, it increased significantly by 51.66% at nominal prices compared to the same quarter of 2021, due to the positive price effect.

The report revealed that Hotels and Restaurants led in growth with 18.13% and 25.55% in real and nominal prices respectively, reflecting a significant recovery in the tourism sector, where the recovery rate reached 82% compared to the pre-pandemic period (specifically with the second quarter of 2019) based on the latest Ministry of Tourism statistics.

Transportation and Telecommunications grew by 15.12% at real prices and 5.94% at nominal prices, Manufacturing recorded an increase of 7.63% and 49.78% at real and nominal prices respectively, and Other Government Services grew by 7.57% rate at real prices and 4.33% at nominal prices.

Trade grew by 7.51% at real prices and 2.66% at nominal prices, while Educational Services had a growth rate of 6.81% and 7.79% at real and nominal prices respectively. The results also showed an increase in Agriculture and Fishing by 5.78% in real prices and 1. 02% at nominal prices.

Real estate and Business services grew by 4.49% at real prices and 3.27% at nominal prices, whereas Financial Services recorded an increase of 3.56% at real prices and 4.38% at nominal prices. Other Social and Personal Services achieved a growth rate of 2.79% at real prices and 4.08% at nominal prices.

Construction was estimated to have grown by 2.60% at real prices and 5.09% at nominal prices.

Economic performance for the second quarter of 2022 improved in comparison with the first quarter of the same year, growing by 5.03% in real prices and 8.31% at nominal prices. The report’s results also showed an increased growth rate in the oil sector by 10.69% and 26.64% and the non-oil sector by 3.93% and 4.88% at real and nominal prices respectively.

Total Educational Services grew by 29.75% and 30.83% in real and nominal prices; followed by Mines and Quarrying, which increased by 10.46% at real prices and 25.41% at nominal prices; Electricity and Water by 10.45% at real prices and 3.21% at nominal prices; and Trading activities, which recorded a growth rate of 7.66% and 1.28% at real and nominal prices respectively.

The results showed an increase of 3.13% at real prices and 7.81% at nominal prices in Manufacturing, while Health Services grew by 1.75% and 1.87% at real and nominal prices, respectively.