Bahrain’s real Gross Domestic Product grew by 4.5 per cent in 2014, according to government data carried by the Bahrain News Agency.
The non-oil sector surged from 3 per cent in 2013 to 4.9 per cent in 2014, show the figures released by the Bahrain Economic Development Board (EDB).
The Bahrain Economic Quarterly report reveals that the hydrocarbons sector delivered stronger growth than originally projected, growing by 3 per cent during the year.
“The report highlights the steadily growing contribution of the non-oil sector to the Kingdom’s economy. The fact that 80 per cent of Bahrain’s GDP now comes from areas other than hydrocarbons highlights the transformative impact of the reform efforts to diversify the economy in the past years,” says Dr. Jarmo Kotilaine, Chief Economist at the EDB.
The construction domain posted a strong growth of 12.5 per cent year-on-year following the launch of a number of major infrastructure and transportation projects.
The hotels and restaurants sector was another top performing sector in 2014 as it expanded by 9.9 per cent, driven by an unprecedented rise in the number of visitors.
According to the data, the financial services sector grew by 3.4 per cent in 2014 compared with 2.3 per cent in 2013.
Dr. Kotilaine adds: “The EDB expects spending on infrastructure, tourism, and increased private sector activity to drive non-hydrocarbon growth much further and offset to a large extent the impact of any decline in revenues from oil.”
The report projects that Bahrain’s real GDP will grow by about 4 per cent over the coming two years.