Bahrain's economy grew by 4.9 per cent in 2022, the highest rate since 2013, underpinned by a robust performance in the country's non-oil sectors that were targeted under its economic reform plan.
The Gulf nation's growth was led by a 6.2 per cent jump in non-oil real gross domestic product, state-owned Bahrain News Agency reported on Tuesday.
It was the highest rate since 2012 and more than the 5 per cent annual target set by the economic reform plan.
The non-oil sector's contribution to the real GDP reached an all-time high at 83.1 per cent in 2022.
However, the oil economy dropped by 1.4 per cent last year due to a dip in production. It contributed 16.9 per cent to the economy last year.
The positive results are the “cumulation of many years of hard work and careful planning [by Bahrain] … to lay the foundations for a sustainable, diverse and prosperous economy”, BNA quoted Shaikh Salman bin Khalifa Al Khalifa, Bahrain’s Minister of Finance and National Economy, as saying.
“Central to these efforts has been the comprehensive economic recovery plan … which is an investment in our nation’s people, our businesses and the future of Bahrain. These results are a statement of our intent to secure a balanced budget by 2024, provide long-term fiscal sustainability and create an economy that delivers for everyone across the kingdom,” he said.
Among the non-oil economic sectors, hotels and restaurants achieved the highest growth rate of 13.9 per cent, followed by the government services sector (6.7 per cent) and property (5.5 per cent).
The manufacturing industry recorded a 4.9 per cent growth, supported by an increase in production in the Bahrain Petroleum Company refinery by 9.7 per cent, Bahrain National Gas Company by 6.5 per cent and Aluminium Bahrain by 2.5 per cent, according to the Ministry of Finance.
To strengthen its economy, Bahrain unveiled a major economic reform plan in 2021 that seeks to invest about $30 billion in strategic projects to drive post-coronavirus growth, boost employment for citizens and attract foreign direct investment.
As per the multi-year plan, the government adopted cost rationalisation measures and aims to create more than 20,000 jobs for citizens annually until 2024 and train 10,000 more through its Tamkeen programme.
The move is aimed at improving the ease of doing business in Bahrain and expected to help the country balance its budget by 2024.
Bahrain also reported a drop in deficit to GDP to -1.1 per cent, a drop in debt to GDP ratio to 100 per cent, and a primary surplus of 3.3 per cent, BNA reported.
Bahrain, the smallest in the six-member GCC bloc, has sought ways to cut spending and achieve a balanced budget.
In January, Bahrain's government announced new measures to help the country tackle growing global inflation, including financial support and the temporary suspension of certain fees.
