Bahrain Economic Outlook
November 27, 2018Macroeconomic fundamentals continued to deteriorate through September: The public debt ratio rose further; the short-term government bond yields spiked, highlighting that investors are losing confidence in the government’s ability to finance its debt; while international reserves also plummeted to a near-record low in September, covering less than a month’s imports. In more positive news, the four-year USD 10 billion financial aid package secured from the Gulf Cooperation Council in early October should support reserves going forward, with the first tranche expected to be disbursed before the end of the year. Additionally, underlining efforts to raise non-oil revenues, Bahrain will implement a 5% VAT on 1 January 2019 while APM Terminals Bahrain, a port operator, has been listed for an IPO.
Bahrain Economic GrowthThe oil and construction sectors should buttress the economy next year, while the financial aid package and subsequent economic reforms should buoy business confidence. Government spending curbs, however, could dampen domestic demand. FocusEconomics panelists expect GDP to grow 2.7% in 2019, down 0.1 percentage points from last month’s forecast, and 2.6% in 2020.
Bahrain Economy Data
5 years of Bahrain economic forecasts for more than 30 economic indicators.
Get a sample report showing all the data and analysis covered in our Regional, Country and Commodities reports.
|Exchange Rate||0.38||0.03 %||Dec 12|
|Stock Market||1,320||0.04 %||Dec 12|
Start Your Free 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.