Bahrain’s economy grew by two per cent year-over-year in the second quarter of 2023, driven by a 2pc expansion in the non-oil sector and a 2.2pc increase in the oil sector.

The details were revealed yesterday in the Bahrain Chamber’s ‘Overview of the Local Economy’ report for the second quarter of 2023.

Formerly known as the Bahrain Chamber of Commerce and Industry (BCCI), the kingdom’s largest and most influential business association carries out a comprehensive assessment of Bahrain’s economy every quarter aimed at helping businesses make informed decisions about investment, hiring, and other strategic matters.

It is also intended to help the government and other stakeholders to develop policies that promote economic growth and create jobs.

The Q2-2023 report shows transport and communications sector grew the fastest at 13.3pc, followed by hotels and restaurants at 9.6pc, and real estate and business activities at 4.9pc.

The financial corporations sector remained the largest contributor to GDP at 17.3pc, followed by the oil sector at 17.1pc and the government services sector at 14.1pc.

Trade between Bahrain and GCC countries declined slightly in during the second quarter compared to the same period in 2022, falling 5pc from $2.09 billion to $1.98bn.

Saudi Arabia remained Bahrain’s top GCC trade partner with $960 million in trade exchange.

Globally, China remained the kingdom’s top import partner, with a total import value of $518m. Smartphones were the top imported commodity, accounting for 10pc of total imports from the Asian giant.

Brazil was Bahrain’s second-largest import partner in Q2 2023, with a total import value of $430 million. Non-agglomerated iron ores and concentrates were the top imported commodity, accounting for 94pc of total imports from the South American country.

The UAE was Bahrain’s third-largest import market, with a total import value of $401m. Gold Ingots were the top imported commodity, accounting for 41pc of imports from the GCC neighbour.

The chamber has found that interest rates on business loans increased across all sectors in Q2 2023 year-over-year.

In the construction and real estate sector, the interest rate increased from 5.15pc to 9.06pc. In the manufacturing sector, it increased from 4.67pc to 8.12pc, and in the trade sector, it increased from 5.87pc to 9.35pc.

Impact

The combined impact of the pandemic and increased digitalisation led to a decrease in ATM withdrawals. The value of ATM withdrawal transactions decreased by 10pc, from BD357.8m in Q2-2022 to BD322.5m in Q2-2023.

In contrast to ATM withdrawals, point-of-sale (POS) transactions increased by 5pc in Q2 2023, from BD975m in Q2-2022 to BD1.026bn in Q2-2023.

The value of supermarket transactions decreased by 4pc, from BD103m in Q2-2022 to BD99m in Q2-2023.

In the same vein, the value of department store transactions decreased by 7pc, from BD36m in Q2-2022 to BD33m in Q2-2023.

The report also shows that the total number of insured employees in the labour market increased by 3.3pc in Q2 2023 year-over-year, from 597,782 to 617,233.

The number of Bahrainis in the private sector increased by 1.1pc year-over-year during the quarter, while the number of non-Bahrainis increased by 4.1pc during the same period. However, the number of Bahrainis in the public sector decreased slightly by 0.3pc in Q2 2023 year-over-year.

On inflation, as measured by the consumer price index, the report finds that it increased by 0.4pc in June 2023 compared with June 2022.

The most notable changes during the period were: 6.1pc increase in prices of food and non-alcoholic beverages, 6.1pc increase in prices of recreation and culture, 2.4pc increase in miscellaneous goods and services, 4.8pc decrease in prices of clothing and footwear.

The IMF has forecast real GDP growth in the Middle East and Central Asia to increase from 2pc in 2023 to 3.4pc in 2024, the report adds, while recording that global inflation is also expected to decline from 6.9pc this year to 5.8pc in 2024.

 

Copyright 2022 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).