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Writer's pictureÖzgür Kurucuk

Bahrain's Economy Soars with 3.3% Growth in Q1 2024

Bahrain's economy grows 3.3% in Q1 2024, boosting GDP to $9.55M. Key sectors like oil, finance, and manufacturing drive this impressive performance

Bahrain’s economy has posted a solid 3.3 percent growth in the first quarter of 2024, lifting its GDP to an impressive $9.55 million. This growth reflects the Kingdom’s dynamic economic performance, driven by significant contributions from both the oil and non-oil sectors. The Information & eGovernment Authority’s latest national accounts estimates reveal a robust and diversified economic landscape in Bahrain.


Bahrain's Q1 2024 Economic Performance


Oil Sector Growth

In the first quarter of 2024, Bahrain's oil sector experienced a notable 3.4 percent growth at constant prices. This increase underscores the sector's critical role in the Kingdom's economic structure. The consistent performance of the oil industry has provided a solid foundation for Bahrain's overall economic stability and growth.


Non-Oil Sector Expansion

Simultaneously, Bahrain’s non-oil sector also grew by 3.3 percent at constant prices. This sector's expansion highlights the Kingdom’s successful diversification efforts. Key non-oil activities, such as Accommodation and Food Service, achieved a remarkable growth rate of 10.7 percent. Financial and Insurance activities followed with a 7.4 percent growth, while the Information & Communications sector saw a 6.6 percent rise.


Sectoral Contributions to Bahrain's GDP


Financial and Insurance Sector

The Financial and Insurance sector emerged as the largest contributor to Bahrain's real GDP among the non-oil sectors, recording a significant 16.7 percent share. This sector's strong performance underscores Bahrain's status as a financial hub in the region, attracting investments and fostering economic resilience.


Manufacturing Sector

Following closely, the Manufacturing sector contributed 14.8 percent to Bahrain’s real GDP. The sector's steady growth reflects the Kingdom’s industrial capabilities and its commitment to enhancing manufacturing activities.


Transition to ISIC4 Classification


Enhancing Economic Data Accuracy

Bahrain has completed its transition to the International Standard Industrial Classification of All Economic Activities, revision four (ISIC4). This move aligns with local, international, and regional requirements, keeping pace with global trends. The updated classification system enhances data exchange and flow between institutions, unifies data interpretation and presentation, facilitates data processing, and reduces duplication of work in economic activity classification. This transition is set to improve the accuracy and flow of Bahrain's statistical data.


Improved Coverage and Updated Databases

Alongside the ISIC4 transition, the Information & eGovernment Authority has expanded coverage of economic activities, which has positively impacted Bahrain's GDP. Comprehensive and updated databases for annual and quarterly national accounts estimates from 2010 have been prepared, reflecting the updated classification. This improvement ensures more accurate and comprehensive economic reporting for Bahrain.


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