Arab News, Wednesday, Mar 29, 2023 | Ramadan 7, 1444
Bahrain GDP grows close to 5% in 2022; fastest pace in almost a decade
Bahrain: Bahrain posted a real
gross domestic product growth rate of 4.9 percent in 2022, the highest economic
growth pace since 2013, its Ministry of Finance and National Economy announced
in its annual economic report.
The report also highlighted that Bahrain is
steadily progressing in its economic diversification journey, as its non-oil
real GDP witnessed 6.2 percent growth in 2022, the highest since 2012.
The growth of Bahrain’s non-oil GDP in 2022 also
surpassed the 5 percent annual target set by its economic recovery plan.
Bahrain launched its multi-year five-pillar
economic recovery plan in 2021, aiming to enhance the strength of the Kingdom’s
economy, its long-term competitiveness, and its recovery post-pandemic.
“The positive results posted today are the
cumulation of many years of hard work and careful planning by the Government of
Bahrain to lay the foundations for a sustainable, diverse, and prosperous
economy,” said Bahrain’s Minister of Finance and National Economy Shaikh Salman
bin Khalifa Al Khalifa.
According to him, central to these efforts has
been the comprehensive Economic Recovery Plan, launched in 2021, “which is an
investment in our nation’s people, our businesses, and the future of Bahrain.”
The program is touted to be Bahrain’s largest-ever
reform program, with over $30 billion catalyzed for investment and
significant labor market and regulatory reforms to improve the ease of doing
business.
Al Khalifa added: “These results are a statement
of our intent to secure a balanced budget by 2024, provide long-term fiscal
sustainability and create an economy that delivers for everyone across the
Kingdom.”
The annual report also revealed that Bahrain
reported a drop in deficit to GDP to -1.1 percent, a drop in debt to GDP to 100
percent, and a primary surplus of 3.3 percent.
In October 2022, speaking exclusively to Arab
News, Khalid Humaidan, CEO of Bahrain’s Economic Development Board, said that
the country is benefitting from a high level of foreign direct investment,
securing $921 million in the first nine months of 2022.
He also added that the board has identified six
priority sectors which include manufacturing, logistics, tourism, information
and communications technology, financial services, and oil and gas.
“We think if we focus on our priority projects,
our priority sectors will be achieved, and we will be able to achieve other
goals that we have in the economic recovery plan. Fiscal balance by the end of
2024 — we’ve committed to that target as a government, and that will happen by
growing the non-oil GDP in the country,” said Humaidan.