Bahrain's economy is on target to meet expectations of four per cent year-on-year growth of gross domestic product (GDP), according to the kingdom's economic quarterly report.

The Economic Development Board (EDB) started issuing quarterly reports in December 2009 to provide regular assessments and key information on the Bahrain economy and monitor growth trends in the context of regional and global outlook.

Based on key market indices, the quarterly survey expects national workforce to increase substantially over the coming years.

However, the growth in the number of foreign workers in Bahrain is expected to slow down.

'The proportion of Bahraini workers aged 20 to 64 is expected to exceed 390,000 by 2020, increasing by 29pc over the next 10 years,' the report said.

The changing trends reflect the growing contribution of Bahraini youngsters and their integration into the labour market.

'The new generation of Bahraini workers is enjoying better educational and training opportunities, arming them to better adjust to the labour market requirements,' the report said.

EDB chief executive officer Shaikh Mohammed bin Essa Al Khalifa hailed the indices revealed in the quarterly report.

'The positive trends prove that we are on target to meet the development goals of our economic strategy through balanced growth,' he said.

'Bahrain fared positively despite the challenges which faced the national economy due to global financial crisis,' he added.

The GDP growth in Bahrain topped 4.3pc in the third quarter of last year, building on the 2009 dividends despite the volatile global economic outlook.

Shaikh Mohammed stressed the need for all parties to continue work to consolidate the positive trends and ensure reform and social development efforts bear dividends.

'The government has to slash spending substantially to regain the budget surplus,' he said.

According to the report, the financial, construction and industrial sectors started showing encouraging signs of recovery since the third quarter of last year.

Government spending is expected to continue slowing down, while nominal GDP will be on the rise.-TradeArabia News Service