Bahrain Economy Grows

Bahrain’s economy witnessed a growth of 8.25 % during the second quarter of this year (Q2) in current prices compared to the same quarter of 2017, according to the latest official data. The non-oil sector saw an increase of 2.4 % in constant prices, said a report issued by Information & eGovernment Authority (iGA). The report said the oil sector had recorded an increase of 40.23 % in current prices due to the rise in the prices of oil.

The report said the manufacturing industry grew by 4.45 % at constant prices and 3.16 % in current prices due to an increase in the value of major industrial commodities produced in Bahrain, compared to second quarter of 2017.

Construction activity grew by 6.65 % at constant prices and 7.42 % at current prices. Real estate and business activities grew by 3.4 % at constant prices and 4.37 % at current prices. While the transportation and telecommunication sectors demonstrated a slight decrease by 0.18 % at constant prices and increased by 5.93 % at current prices.

The report indicated that other public services, excluding education and health, increased by 3.99 % at constant prices and 4.68 % at current prices. Other social and personal services also witnessed an increase of 1.84 % at constant prices and 1.90 % at current prices. Additionally, electricity and water activity witnessed an increase of 3.92 % in constant prices and 11.88 % in current prices.

The report indicates that private and public educational services rose by 3.46 % at constant prices and 2.89 % at current prices; private and public health services increased by 4.78 % at constant prices and 6.48 % at current prices. Agricultural and fishing activity also increased by 1.61 % in constant prices and 4.37 % in current prices.

According to the report, the growth witnessed during the second quarter in comparison to the first quarter demonstrates economic progress of 6.10 % at constant prices and 5.12 % at current prices. Moreover, the oil sector increased by nearly 22.31 % at constant prices and 19.44 % at current prices. The non-oil sector increased by 3.03 % and 2.83 % at constant and current prices, respectively.

Current prices measure GDP using the actual prices noticed in the economy and makes no adjustment for inflation. Constant prices adjust for the effects of inflation. Using constant prices enables us to measure the actual change in output (and not just an increase due to the effects of inflation).