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FINANCIAL NEWS
Bahrain’s economy expected to grow up to 5% in 2012: EDB
23 May 2012
(MENAFN) A recent report released by the Economic Development Board (EDB) expected Bahrain’s gross domestic product (GDP) to grow between 4 to 5 percent this year, helped by higher crude oil production, manufacturing and government spending, Arabian Business reported.
The report said government spending is expected to offset a fall in private sector demand and oversupply of commercial properties, and stimulate construction for infrastructure, social housing and other social spending projects such as schools and hospitals.
The report also estimated that the Gulf island kingdom’s annual real output continued to grow by 2.2 percent last year.
The report added that Bahrain’s output recovered in the third quarter and grew by 3.2 percent in 2011’s final quarter year-on-year; after a sharp fall in the output in the first quarter, which saw the political unrest that spread across the Middle East.
According to the report, the transport and communication sector saw the highest growth last year by 11 percent, unlike the hotels and restaurants sector which was hit the most in 2011; although it showed some recovery in the second half.
EDB said that the country attracted over USD300 million in new foreign investments, which poured mainly in the banking and manufacturing sectors, with more than 20 new companies establishing operations in Bahrain.
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