Bahrain’s nominal economic growth in the third quarter of 2021 reached 10.2% while the real growth was 2.1%, with the expansion led by 5.9% nominal and 3.8% real YoY growth in the non-oil sector. By contrast, the oil sector expanded by 39.9% in nominal terms because of higher oil prices, but the sector contracted by 4.6% YoY in real terms.
According to estimates of national accounts issued by the Information and E-Government Authority, following two successive quarters of expansion, the Bahraini economy in Q1-3 2021 taken together was 1.5% larger than during the first three quarters of 2020.
Estimated real non-oil growth of 3.8% in Q3 represented a high degree of normalisation in sectors disrupted during the pandemic. The Transportation & Communications sector expanded by 25.8% YoY, followed by a 4.7% gain in Real Estate & Business Activities, 4.5% in Trade, and 4% in Social & Personal Services. Manufacturing was almost flat at – 0.3% YoY, while Financial Corporations contracted by 2.7%.
Across the Gulf region, economies have returned to growth supported by a combination of increased oil extraction and a broad-based non-oil rebound. For instance, Saudi Arabia saw an estimated 7% YoY growth in Q3. The IMF projects GCC growth of 2.7% in 2021.