Bahrain Economic Outlook
February 6, 2018The economy gathered momentum in Q3, according to recent figures. At 3.6% year-on-year, growth was up marginally from the prior quarter, spurred by a dynamic non-oil sector. The wholesale and retail trade sub-sector surged, as did the hotels and restaurants sub-sector, which was likely boosted by the burgeoning tourism industry—visitors were up sharply in January–September, particularly from neighboring Gulf countries. However, the oil sector declined due to ongoing output restrictions, while construction was limp. In early January the government increased petrol prices to tame the sizeable budget deficit. The move came soon after the introduction of new excise taxes from 30 December. However, the fiscal position remains weak, and international reserves are low; they dipped sharply in November after briefly rising following a bond sale.
Bahrain Economic GrowthGrowth this year will be supported by healthy infrastructure spending, with projects including the Alba Line 6 expansion and a new oil pipeline between Bahrain and Saudi Arabia underway. However, continuing fiscal consolidation and oil production cuts will drag on growth. FocusEconomics panelists expect GDP to grow 2.6% in 2018, down 0.1 percentage points from last month’s estimate, and 2.8% in in 2019.
Bahrain Economy Data
5 years of Bahrain economic forecasts for more than 30 economic indicators.
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|Exchange Rate||0.38||0.03 %||Feb 20|
|Stock Market||1,345||0.04 %||Feb 20|
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