Sound policies 'helped Bahrain buck meltdown'
Manama, June 8, 2011
Bahrain has succeeded in overcoming the fallout of the global financial meltdown on the economy, Central Informatics Organisation (CIO) chief Dr Mohammed bin Ahmed Al Amer said.
According to the CIO 2010 Report, sound economic policies enabled the economy emerge from the crisis.
"The government resorted to highly-balanced financial policies, prioritising basic needs," Dr Al Amer said.
He credited the government policies and the Central Bank of Bahrain for winning back trust in Bahrain's banking system.
The financial services sector grew by 4.2 per cent in constant prices and 5.8 per cent in current prices as a result of the good results posted by commercial banks.
The manufacturing sector ended last year on a good note growing by 11.4 per cent in constant prices and 20.1 per cent in current prices.
The growth momentum covered most industrial sectors, particularly oil-based industries, such as oil refining, gas liquefaction, petrochemicals, aluminium, metallic and food industries, as prices soared on international markets with growing domestic demand.
The added value in the government-funded tertiary sector grew by 3.8 per cent in constant prices and 3.2 per cent in current prices, as the expenditure on wages grew by 4.1 per cent, compared with the 2009 results.
The transport and telecommunications sector continue their positive results growing by 9.2 per cent in constant prices and 7.3 per cent in current prices - despite a slight decrease in revenues of leading companies.
The wholesale and retail trade sectors soared by 7.8 per cent in constant prices and 5.5 per cent in current prices as a result of growing domestic demand and increasing volume of imports.
As for the construction sector, it grew by 3.4 per cent in constant princes, compared with 3.6 per cent in current prices.
Doubling government capital expenditure in 2010 revitalized the sector, in addition to other ordinary and small investment projects. Real estate activities posted improved slightly, growing by 1.9 per cent in constant prices.-TradeArabia News Service