Bahrain Economic Outlook
January 14, 2020Economic growth accelerated in the third quarter, after slowing to a near standstill in Q2, although it remained downbeat by historical standards. A strong expansion in the transport and communication, and manufacturing sectors, which collectively account for around one-fifth of total output, supported Q3’s acceleration. However, oil and gas production, which also accounts for around one-fifth of output, dropped off slightly as Bahrain continued to comply with OPEC+ production cuts. Turning to Q4, the economy likely remained deflated, as suggested by continued compliance with OPEC+ production curbs through November. However, upbeat point-of-sale transactions in October suggest the non-oil private sector will continue to pick up the slack. In other news, the government recently announced a sharp reduction in visa prices, effective from January, in a bid to boost tourism.
Bahrain Economic GrowthGrowth should accelerate this year as low interest rates will support private consumption growth, while healthy inbound tourism should also stoke activity. However, weighing on the outlook are poor public finances, which constrain government expenditure, continued OPEC+ production cuts and regional geopolitical instability. FocusEconomics analysts expect growth of 1.8% in 2020, which is down 0.2 percentage points from last month’s forecast, and 2.1% in 2021.
Bahrain Economy Data
5 years of Bahrain economic forecasts for more than 30 economic indicators.
Get a sample report showing our regional, country and commodities data and analysis.
|Exchange Rate||0.38||0.03 %||Jan 01|
Request a Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.