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HomeGovernmentiGAThe Bahraini economy is recording a recovery at current prices by 0.20% in the fourth quarter of 2020

The Bahraini economy is recording a recovery at current prices by 0.20% in the fourth quarter of 2020

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The Information and eGovernment Authority issued the preliminary results  of the national accounts for the fourth quarter of 2020.  The report indicated that the Kingdom of Bahrain’s GDP had achieved a slight recovery in the fourth quarter at current prices, equivalent to 0.20%, while the economy stabilized at constant prices compared to  the previous quarter of the same year (Q32020).

The quarterly National Accounts bulletin indicated that the gross domestic product of the non-oil sectors grew by 3.32% and 2.07% at real and current prices respectively, supported by the recovery of the financial sector, transportation and  communications sector , government services and trade sectors.

The  national accounts report confirmed that financial projects grew by 11.56% at real prices and declined by 6.59% at current prices when compared to the third quarter of 2020.

The bulletin showed a significant growth in the field of transportation and communications by 9.44% and 9.97%. Government services also registered a growth  of 5.25% at real prices and 13.05% at current prices. The social and personal services had shown a positive  growth of 7.15% at real prices and 8.45% at current prices. As for the trade sector, it rose by 2.03% and 2.87% at real and current prices, respectively.

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The Building and construction recorded a slight contraction  of 0.77% at real prices, while it achieved a   growth of 1.25% at current prices, while  the mining and quarrying sector recorded a major contraction  of 12.28% at real prices and 11.43% at current prices. The hotel and restaurant activity recorded a decrease of 13.58% at real prices and 13.52% at current prices, reflecting the impact of the pandemic on the tourism sector.

The Manufacturing sector has shown a mixed trend,  decreased by 1.79% at real prices while they grew by 5.31% at current prices.

As for private educational and health services, private education witnessed a decrease of 0.54% and 0.21% at real and current prices, respectively. Private health services also witnessed a contraction of 0.02% at real prices, while they increased by 0.06% at current prices.

Comparison of Q4 2020 estimates with the Q4 2019 estimates

When compared the economic sectors and activities during the fourth quarter of 2020 with the corresponding quarter for the year 2019, we find that the economy  contracted by 5.51% at real prices and by 7.28% at current prices. The results also showed a significant negative  growth  in the oil sector by 8.62% at constant prices, and by 30.90% at current prices, and  the decline also continued in  the non-oil sector by 4.82% and 3.27% at constant and current prices, respectively.

The  government services  grew by 12.68% at real prices and 13.72% at current prices, whereas the  financial sector projects recorded a positive growth  of 11.04% and 12.48% at real and current prices, respectively.  However, due to the extension of the repercussions of the pandemic and its direct impact on air traffic and hotel occupancy, the hotel and restaurant sector declined by 42.22% and 42.58% at real and current prices respectively, whereas  the transport and communications activity recorded a decrease by 30.78% at real prices and 29.27% at current prices. The report  also indicated a decline in building and construction activity amounting  to 2.14% at constant prices and 10.89% at current prices. Likewise, commercial trade activities declined, as expected, by 9.57% and 7.42% at constant and current prices, respectively. The manufacturing industries also decreased by 9.12% in constant prices, and grew very slightly by 0.79% at current prices.

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