Latest Bahrain economic quarterly report estimates 2012 real GDP growth of 3.9%

The annual pace of economic growth in the first three quarters of 2012 was 4.4%, led by a strong rebound in the non-oil sector of the economy, with overall growth for the year estimated at 3.9% and all main sectors of the economy recording positive growth.

The rebound in economic activity has been supported by a significant increase in lending by Bahraini retail banks. The country's retail banks are in generally robust health and have been working to remobilize their liquidity after a period of elevated risk aversion.

The strengthening of the short and long-term picture for the Bahraini economy has been reflected in the fact that Standard & Poor's has recently revised its outlook on the Kingdom from 'negative' to 'stable'.

Growth is also likely to pick up further in 2013 due to planned large-scale industrial investments and growth in infrastructure spending. The Bahraini economy is fairly resilient to external shocks and it is currently estimated that real GDP growth could exceed 6% this year.

Commenting on the report, Kamal bin Ahmed, Minister of Transportation and Acting Chief Executive of the Bahrain Economic Development Board (EDB), said: "The latest Economic Quarterly report demonstrates that Bahrain's economy continues to strengthen and after achieving solid growth in 2012, the economy is well-positioned to continue to achieve steady and sustainable expansion in 2013 and beyond.

"In particular, the Kingdom plays an important role as a gateway to the rapidly expanding GCC economies, and the opportunity this offers for investors is demonstrated by the strong performance of key non-oil and gas sectors."