Nora Al -Faihani
The attention of observers and investors towards the Kingdom of Bahrain was directed with renewed attention with the issuance of the latest national account estimates for the first quarter of 2025, the numbers revealed by the Information and Electronic Government Authority was a living pulse that foretells of a promising economic path, the GDP increased by 2.7% when measured by fixed prices, and by 3.0% at current prices compared to the perfect quarter of a year 2024, this growth carries in its details deep economic messages and a success story that deserves meditation.
The most prominent story here is not just achieving positive growth, but rather in its double and balanced nature. The economy did not rely on a single crane as usual. Rather, growth came as a fruit for an almost balanced improvement in the performance of the main sectors: oil and non -oil.
At a time when oil activities, the traditional spine, recorded a tangible leap of 5.3% at fixed prices and 4.6% in the maid, the non -oil sector, which represents the future and diversification, showed a steady hardness and growth of 2.2% and 2.8%, respectively.
This balance between the energy sector and the broader economy indicates a greater flexibility of the national economy and a better ability to absorb possible shocks in the volatile oil markets, which is vital for long -term economic security.
But the true spirit of optimism lies in the details of the performance of the non -oil sector, here, three main engines that promote the diversification wheel with clear momentum, the tourism and hospitality sectors (residence and food services) topped the scene with an amazing growth of 10.3% at fixed prices, which is a number that translates directly into a prosperity in the movement of tourists and visitors and vitality in the entertainment and consumer activity associated with them, and reflects the success of Bahrain’s promotion efforts As an attractive regional destination, followed by the importance of the financial services and insurance sector, the cornerstone of the Economic Vision 2030, which has grown by a strong 7.5%. This growth is not just numbers, but rather a concrete evidence of continuing confidence in the Bahraini organizational environment and the Kingdom’s ability to attract and localize advanced financial investments, and finally, the construction and construction sector comes to record solid growth by 5.4%, indicating the continued momentum of major development projects and investment in infrastructure, which creates job opportunities, and stimulates a wide range of industries.
Then there is that small gap between the two growing rates of fixed prices (2.7%) and the current (3.0%), this difference, and if it seems slight, it carries an important significance. It indicates that there is a degree of inflation in local prices, as growth at current prices was slightly higher than growth at fixed prices (which exclude the impact of inflation, and reflects the growth of real quantities), and this places a precise challenge before politics, which is the balance of growth support while maintaining the stability of prices and the purchasing power of the citizen.
The first quarter of 2025 provides a bright beginning image of the Bahraini economy, as it is a growth based on two solid foundations: the recovery of the traditional oil sector, and clear progress in the strategic diversification sectors, especially tourism, financial and construction, and this integration enhances the ability of the economy to achieve sustainable progress, but the road is not without challenges, most notably the management of inflation accompanying growth and preserving the investment momentum that feeds the promising illegal sectors.
Bahrain’s continuous economic success will be dependent on preserving this accurate equation between exploiting the current opportunities and building solid foundations for a fewer future on oil. The numbers are vibrant and the path so far, heralds a promising economic season.
