Construction drives Bahrain's economic growth in Q3

Bahrain's economy grows 5.1% during third quarter as construction sector expands by more than 12%
Construction drives Bahrain's economic growth in Q3
By Andy Sambidge
Sat 17 Jan 2015 09:36 AM

Bahrain's economy grew 5.1 percent from a year earlier in the third quarter, according to new figures released by the Bahrain Economic Development Board (EDB).

The EDB said the Q3 growth continues the momentum from earlier in 2014 and "reflects the positive impact of the initiation of a number of significant infrastructure projects".

Overall growth for 2014 is forecast to have been in excess of 4 percent, a statement said.

The latest Bahrain Economic Quarterly also highlighted the resilience of Bahrain's non-oil growth.

This was particularly apparent in the construction sector, which experienced acceleration from 3.6 percent annual growth in Q2 to 12.3 percent in Q3, making it the fastest growing sector of the economy.

The hotels and restaurants sector also posted strong year-on-year growth of 7.4 percent, the EDB said, adding that the hydrocarbons sector in Bahrain also continued to expand, with a 4.7 percent gain in Q3 compared to the year-earlier period.

The report added that the performance of the Bahraini economy in the near term is likely to benefit from a number of positive drivers, with an increase in infrastructure spending set to continue.

Dr Jarmo Kotilaine, chief economist at the EDB, said: "In spite of increased volatility in the global oil markets, economic growth in Bahrain has remained robust with clear indications that infrastructure spending is significantly boosting the momentum in the non-oil sector, and serving as an important platform for continued resilience."

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