Bahrain has reported a 4.09% increase in its real GDP in the fourth quarter of 2022 YoY, driven by a growth of 4.91% in the non-oil sector, as a result of its economic diversification initiatives.
The high-achieving sectors include the Financial Corporations sector which grew by 8.22%, the Trade sector, which increased by 6.57% and the Real Estate and Business Activities sector, which posted a growth rate 6.04%.
The Financial Corporations sector was the leading contributor to the Bahrain’s GDP with 18.57%, ahead of the Crude Oil and Natural Gas sector.
Trade between Bahrain and the Gulf Cooperation Council (GCC) countries grew by 17% in the fourth quarter of 2022 compared to the same period 2021.
Bahrain’s tourism sector in Q4 2022 exceeded pre-pandemic levels, as inbound tourism flows increased by 62% compared to the same quarter of 2021.
The inflation rate increased by 8.8% worldwide in 2022, according to International Monetary Fund (IMF) data, but is expected to decrease to 6.6% in 2023. The consumer price index in Bahrain increased by 3.6% in December 2022 compared to December 2021. As a result, interest rates on commercial loans in Bahrain increased in various sectors during the fourth quarter of 2022 on an annual basis.
IMF expected real GDP growth to reach 2.9% globally and 3.2% in the Middle East and Central Asia in 2023
Source: Bahrain News Agency