Bahrain's economy grows 2.7% in Q1 on big non-oil activity
COMMERCIAL NEWS
Bahrain's economy grew at 2.7% at constant prices during the first quarter this year, mainly driven by an increase in both non-oil and oil activities by 2.2% and 5.3% YoY, respectively, reported BNA, citing the Economic Quarterly Report for Q1.
According to preliminary national accounts data released by the Information and eGovernment Authority, the non-oil activities played a significant role in supporting overall economic performance with it contributing to 84.8% of real GDP in Q1 2025.
While in nominal terms, GDP grew by 3% as both non-oil and oil activities rose by 2.8% and 4.6% YoY, respectively.
In terms of performance of economic activities in Q1, Accommodation and Food Services recorded the highest growth rate at 10.3% YoY, while Financial and Insurance Activities - the largest contributor to GDP - achieved a growth rate of 7.5% in real terms. Further, Construction and Education grew by 5.4% and 2.5% YoY, respectively, stated the BNA report.
Professional, Scientific and Technical Activities recorded an increase of 2.2%, while both Wholesale and Retail Trade and Real Estate Activities grew by 2.0%, followed by Transportation and Storage Activities at 1.9%, and Information and Communication Activities at 1.4%.
On the other hand, Manufacturing recorded a slight decline of 0.4%, it added.
The report also highlighted growth in foreign investment stock, with Inward Foreign Direct Investment (FDI) stock rising by 3.5% YoY in Q1 of 2025, bringing the total to BD17.1 billion ($45.1 billion).
Meanwhile, Bahrain has continued to make notable progress across several international economic and development benchmarks, reflecting the kingdom’s commitment to economic diversification, global standards and enhancing its business environment through the adoption and implementation of a number of ambitious strategies and initiatives.
