Bahrain’s real GDP grew year-on-year (y-o-y) by 4.3% in 3rd quarter, compared to a y-o-y growth of 4.6% in the second quarter, data released on the Central Informatics Organization indicated. Quarter growth rate reached 0.8% in the 3rd quarter, compared to quarterly growth of 1.1% in the second.
The oil sector grew y-o-y by 1.1% on the back of the increasing oil and gas production levels, while the non-oil sector grew y-o-y by 4.8% in the 3rd quarter.
The building and construction sector grew by 4.5% y-o-y and by 1.2% quarter-to-quarter (q-o-q), on the back of maintenance works held on previously built infrastructure projects, as well as on building privately owned small-scale projects.
The real estate sector saw 1.7% y-o-y growth and 1.6% q-o-q. The sluggish growth in the real estate sector comes as a result of the lack of liquidity in the domestic market, given the banks’ resilience to lend to the sector. The financial sector, which accounts for more than 25% of the GDP, grew by 5.7% y-o-y in 3Q2010, slightly lower than growth levels of 1Q2010 and 2Q2010 of 6% and 7%, respectively, albeit, well above growth levels of 2009, which overall saw the sector falling on annual basis by 6.0%. The Central Bank of Bahrain sees the economy growing between 3 - 4% in 2010 and 2011.