Kingdom of Bahrain publishes 2019 Annual Economic Report

Manama, Apr. 1(BNA): The Kingdom of Bahrain’s Ministry of Finance and National Economy today published the 2019 Bahrain Annual Economic Report, incorporating the latest economic data and indicators for the Kingdom’s economy and highlights important global and regional economic analysis. The report indicates that Bahrain’s economic development remains on track, supported by the government’s comprehensive fiscal and economic strategy and the guiding principles of the Economic Vision 2030. Results show that the Kingdom of Bahrain recorded annual real GDP growth of 1.8% during 2019, spurred by a recovery of the oil sector which grew by 2.2%, and continued non-oil sector growth of 1.7%, both in real terms. The hotels and restaurants sector registered the strongest non-oil sector performance in 2019; growing by 6.8% year-on-year, supported by a 3.8% increase in the number of visitors across the King Fahd Causeway and a 5.5% increase in arrivals via Bahrain International Airport (BIA). The average length of stay for visitors increased by 16.8%, with average daily visitor spending increasing by 1.1%. Demand for five-star and four-star hotels also saw strong growth in 2019, with occupancy rates reaching 52% and 49%, respectively. Demand for five-star accommodation grew particularly strongly, increasing by 6% year-on-year. The personal and social services sector also registered strong growth in 2019, expanding by 2.9% and bolstered by growth in the private educational services and private health services sectors. The construction and manufacturing sectors saw robust expansion of 2.6% and 1.6%, respectively, in 2019, with the manufacturing sector partly supported by the inauguration of Aluminum Bahrain (Alba)’s Line 6 Expansion Project. This year’s report further indicates that financial services remains the Kingdom’s largest non-oil sector contributing 16.5% to GDP, followed by manufacturing at 14.5% and government services at 11.8%. The report further detailed the completion of a number of major construction projects in the Kingdom during 2019, including projects under the GCC Development Fund. The most prominent of these were the completion of 1,560 housing units in Madinat Khalifa, and the development of Sheikh Jaber Al-Ahmad Al-Sabah Highway. The Kingdom’s oil sector project also saw great milestones reached, with the Bahrain Petroleum Company (Bapco) modernization program achieving 40% completion. The project is expected to conclude in 2022.