Manama: The Kingdom of Bahrain’s financial sector has recorded the highest contribution to GDP by 16.43% in Q2, thanks to the increasing profits of financial institutions and insurance sector.
The statistics for the Q2 showed a growth in non-oil sectors, including the financial sector, the Kingdom of Bahrain continued to achieve a balanced growth across its diversified economy; achieving economic growth in the second quarter of 2019 supported by the growth in the non-oil sectors.
The Information & eGovernment Authority (iGA) has issued its report of the provisional national accounts results for the second quarter of 2019 which indicated that the economy recorded a real growth of 0.84% and 1.76% in current prices compared to the same period of the previous year.
The Q2 2019 report comparable to the Q2, 2018 showed that the oil sector GDP saw a decline by 0.8% in real prices and 5.75% at current prices in line with current global oil market conditions.
The non-oil GDP grew by 1.21% in real terms and had a comparable growth rate of 3.16% at current prices.
The report also indicated that the hotels and restaurants sector achieved the highest growth rate by 8.66% and 10.65% at constant and current prices, respectively. The construction sector grew by 3.96% at constant prices and 4.51% at current prices while the transportation and communications sector increased by 3.43% at constant prices and by 8.72% at current prices. Meanwhile, the financial corporations witnessed an increase of nearly 2.62% in constant prices and 2.78% in current prices. The private educational services rose by 2.44% at constant prices and 2.32% at current prices, while health private services increased by 3.24% at constant prices and 3.27% at current prices.
The report indicated that other social and personal services increased by 0.32% at constant prices and 3.15% at current prices. Electricity and water activities grew by 0.26% at constant prices and 0.05% at current prices.
The manufacturing industry dropped by 0.48% at constant prices and grew by 5.51% in current prices while real estate and business activities recorded a decline by 4.69% at constant prices and by 3.28% at current prices.
When comparing the second quarter with the first quarter of 2019, economic growth slightly increased by 3.39% and 4% at constant and current prices, respectively. The real non-oil GDP recorded a growth by 1.83% while achieving a growth of 1.92% in current prices. Oil sector improved by 11.10% at constant and 18.12% at current prices.
The report also indicated that the financial corporations witnessed a slight increase of nearly 0.44% in constant prices and 0.67% in current prices. The construction sector grew by 1.76% at constant prices and 0.41% at current prices; moreover, trading sector increased by 0.47% at constant prices and 2.02% at current prices.
Real estate and business service sector demonstrated growth by 0.90% at constant prices and by 1.01% at current prices. Results also show that the transportations and communications sector increased by 4.12% growth in constant prices and 8.11% in current prices. Furthermore, the manufacturing sector achieved growth of 2.95% in constant prices and decreased by 0.89% in current prices. Government services increased by 7.77% at constant prices and 8.25% at current prices while other social and personal services increased by 0.61% at constant prices and 1.09% at current prices.
Additionally, electricity and water activities witnessed an increase of 8.19% in constant prices and 8.12% in current prices. In contrast, the hotels and restaurants sector saw a decline of 3.86% and 2.97% at constant and current prices, respectively.
