Bahrain has emerged as the fastest growing economy in the Gulf Cooperation Council (GCC) helped by a 3.9 per cent growth in real GDP, as its non-oil economy expanded 5pc, said the latest Bahrain Economic Quarterly (BEQ) report.
According to the quarterly report by the Bahrain Economic Development Board (EDB), the pace of growth in the Kingdom ‘accelerated markedly’ in 2017 compared to 3.2pc in
This strong performance, in the face of sluggish regional growth, was driven by broad-based success across the highly-diversified non-oil private sector, led by tourism, a strong pipeline of infrastructure projects, and a record year for foreign direct investment (FDI).
Earlier this month, the IMF’s World Economic Outlook forecast that Bahrain’s economy would continue to be the fastest growing economy in the GCC in 2018, suggesting momentum is expecting to be maintained into the current year.
Led by tourism, Bahrain’s hotels and restaurants sector expanded 9.5pc in 2017 with total visitor expenditure rising by 8.9pc and the average length of stay increasing 2.5pc to 2.82 days.
Other high performing sectors in 2017 included social and personal services (9.4pc), led by private education and healthcare, trade (8.5pc), real estate and professional services (5.5pc) and financial services (5pc).
Data also suggests that the oil and gas sector now accounts for the only 18.4pc of Bahrain’s real GDP, compared to 43.6pc in 2000.
Despite the demonstrable success of economic diversification, oil and gas remain a strong component of Bahrain’s economy. The recently announced, 2,000 sq km Khalij al Bahrain field, The 2,000 sq km Khalij al Bahrain field, which is expected to start production within the coming five years, mainly composed of shale oil and natural gas in quantities, will far exceed Bahrain’s current reserves. Production is expected to begin in five-years time.
Source Credit: DT News