By Karen Leigh
Gulf state on track to double household income by 2030, 5% GDP growth predicted in 2011
Pushed by tourism, manufacturing and financial services, Bahrain’s GDP grew by 4.3 percent in the first nine months of 2010, beating its 4 percent growth expectation for the year.
Hotel and restaurant business in the Gulf state swelled 15 percent, manufacturing by eight and financial services by six percent, a report by the state-backed Bahrain Economic and Development Board (EDB) said.
The report also said Bahrain remains on track to achieve the key aim of its economic blueprint, Economic Vision 2030, of doubling Bahraini real household income by 2030.
The findings meet with International Monetary Fund forecasts for the year. The agency has predicted five percent GDP growth in 2011 for the Gulf state.
“The near-term outlook is favourable, buoyed by the rebound in oil prices, the continuing recovery in the global economy and fiscal stimulus,” the IMF said. “Growth is expected to accelerate from the three percent recorded in 2009 to four percent in 2010 and further to five percent in 2011.”
Sheikh Mohammed bin Essa Al Khalifa, chief executive of the Bahrain EDB, said the report showed the effectiveness of the kingdom’s economic policies.
Ratings agency S&P earlier this month reaffirmed the country’s ‘A’ rating for sovereign debt, with a stable outlook.
“The ratings on the Kingdom of Bahrain reflect the government’s net financial asset position, renewed development of its hydrocarbon resources, and strong international alliances,” it said.