The Bahrain economy grew at its fastest pace since 2013, with a 4.9% increase in 2022, according to the annual report released by Bahrain’s Ministry of Finance and National Economy. The report stated that the non-oil sector’s real gross domestic product had grown by 6.2%, surpassing the annual target of 5% set under Bahrain’s economic reform plan.
However, the oil economy decreased by 1.4% due to a fall in production, contributing just 16.9% to the economy last year. The government unveiled an economic reform plan in 2021, which aims to invest $30bn in strategic projects, drive post-COVID growth, and attract foreign direct investment to create more jobs and diversify the economy. The plan also aims to create over 20,000 jobs for Bahraini citizens annually until 2024 and train 10,000 more through its Tamkeen program. Bahrain’s Ministry of Finance and National Economy has set a target of achieving a balanced budget by 2024.
Bahrain’s impressive economic growth in 2022 is a positive sign for the country’s economy, especially considering the challenges faced due to the COVID-19 pandemic. The strong growth of the non-oil sector is particularly noteworthy, as it indicates that the government’s economic reform plan is having a positive impact. By investing in strategic projects and attracting foreign direct investment, Bahrain is taking steps towards diversifying its economy and reducing its dependence on oil.
The decrease in the oil economy is a reminder of the importance of diversification, as it highlights the risks associated with relying on a single industry for economic growth. However, with only 16.9% of the economy coming from the oil sector, Bahrain is already making progress in this regard. The government’s goal of achieving a balanced budget by 2024 is also a positive development, as it demonstrates a commitment to fiscal responsibility and sustainable economic growth.
The economic reform plan’s target of creating over 20,000 jobs for Bahraini citizens annually until 2024 and training 10,000 more through its Tamkeen program is a significant step towards improving the country’s job market and reducing unemployment. The creation of new jobs will not only benefit Bahraini citizens but also contribute to the country’s economic growth by increasing consumer spending.
Overall, Bahrain’s strong economic growth in 2022 and the government’s ambitious economic reform plan are positive developments for the country’s economy. By continuing to invest in strategic projects and attract foreign investment, Bahrain can build on this momentum and further diversify its economy, creating more opportunities for its citizens and driving long-term economic growth.