Bahrain growth to touch 3.4% as result of fiscal reforms, oil prices
Bahrain is experiencing a gradual post-Covid recovery, while the renewed fiscal reform momentum and high oil prices are mitigating Bahrain’s fiscal and external vulnerabilities, said an IMF mission at the end of a visit to Bahrain.
“Growth is projected to accelerate to 3.4 percent in 2022, with non-oil GDP increasing by 4 per cent driven by stronger manufacturing and the full reopening of the economy. Thereafter, growth is projected to stabilise at around 3 per cent over the medium term,” said a statement by Asmaa El-Ganainy.
The Bahraini economy grew by 2.2 percent in 2021, driven by 2.8 percent growth in non-hydrocarbon GDP while hydrocarbon GDP contracted by -0.3 percent. With the economic recovery and higher oil prices, the state budget deficit narrowed to -6.8 percent of GDP in 2021, while the overall fiscal deficit narrowed to-11.1 percent of GDP. Government debt declined slightly to 129 percent of GDP in 2021.
