Bahrain GDP contracts 3.8% as Iran conflict dents oil sector
Bahrain has recorded its first quarterly contraction since Q1 2021 and its steepest decline since the fourth quarter of 2020, as the US-Iran conflict continues to disrupt oil output.
The kingdom’s real GDP (gross domestic product) – a measure of economic output adjusted for price changes - slid 3.8% from January through March this year, ending a five-year run of quarterly year-on-year growth, according to a report issued by the Ministry of Finance and National Economy.
The contraction was driven by a 37.2% dip in oil activity, driven by restrictions on maritime traffic through the Strait of Hormuz which affected export capacity, alongside scheduled maintenances, the ministry said.
Non-oil real GDP grew 2.2% in the first quarter, with financial and insurance activities recording the highest growth rate among non-oil activities at 8.6%.
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