Bahrain’s gross domestic product (GDP) grew by 5.72 percent at constant prices and 20.74 percent at current prices in the second quarter (Q2) of 2021, according to the kingdom’s Information and E-Government Authority.
Growth was attributed to the non-oil sector’s expansion, 7.78 percent and 12.82 percent at constant and current prices respectively, supported by activity in the transportation and telecommunications sectors (47.92 percent and 44.86 percent); and hotels and restaurants (45.22 percent and 40.69 percent).
The island nation’s oil sector declined by 2.41 percent at constant prices and increased by 98.30 percent at current prices, compared to the same quarter of 2020.
The quarterly report’s results indicated signs of economic recovery for Bahrain, a positive reflection of the government initiatives implemented to help its economy cope with the double shock of Covid-19 and a fall in oil prices.
Real estate and business services increased by 4.73 percent at constant prices and 3.02 percent at current prices, and trade grew by 4.17 percent and 2.66 percent, respectively.
GDP in the second quarter, compared to the first quarter of this year, rose by 3.51 percent and 6.37 percent at constant and current prices. The oil sector also increased by 7.76 percent at constant prices and 18.94 percent at current prices, while the non-oil sector grew by 2.58 percent and 4.39 percent.
The report showed overall recovery at varying rates for manufacturing and construction activity, hotels and restaurants, real estate, and business services, when compared to Q2 2020.
The kingdom recently announced that it will double value-added tax (VAT) to 10 percent in an effort to boost revenues and curb one of the Gulf’s widest budget deficits as the economy begins to recover from the pandemic.
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