Bahrain Economic Development Board’s latest report celebrates the success of tourism, services and telecommunications sectors in driving Bahrain’s economy during the last decade.
A new government report celebrates the success of tourism, services and telecommunications sectors in driving the overall growth of Bahrain’s economy in the last decade.
Titled “Drivers of Economic Growth 2000-2011″, the report by Economic Development Board (EDB) highlights the country’s strong growth performance areas in 2000-2011. During this period, Bahrain achieved an increase in real gross domestic product (GDP) by an annual average rate of five per cent. To maintain the growth momentum, the report underlines the importance of economic, regulatory, and institutional reforms in the country. These reforms are viewed as important to create a conducive investment climate and liberalize various sectors of the economy.
The “champion” sectors of tourism, services and telecommunications were able to ward off adverse impacts of the global financial crisis and thrive based on the strength of the domestic economy. As they continued to achieve strong growth, their GDP weight also increased and they overshadowed other sectors that proved to be highly vulnerable. By stabilizing its oil output, the country has also reduced its reliance on oil exports and invested in the development of other sectors of the economy.
The growth recorded between 2000-2011 was led by consumption and investment as the country showed resilience to global economic downturn. Cyclical improvements in net exports contributed only modestly towards the overall growth figure, which was higher than other emerging economies. However, there is no room for complacency as Bahrain requires further improvements in human capital development, productivity and innovation to continue with its growth momentum.
As Bahraini companies seek to explore new horizons in regional and global markets, the authorities need to focus on diversifying the country’s economy and launch new strategic development initiatives in high value-added sectors. Efforts should also be made to improve the efficiency of government expenditure and support the growth of small and medium-sized businesses.
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