Bahrain’s economy to grow at 3% this year says IMF

Bahrain’s economy to grow at 3% this year says IMF

Bahrain’s economy is expected to grow at 3 per cent this year and 3.8pc in 2024, according to the IMF, with the main driver of growth shifting from oil to nonhydrocarbon activities in the kingdom as well as the rest of the GCC.

Revising the GCC growth outlook downwards in its latest Mena regional economic outlook released yesterday, the International Monetary Fund said economic expansion in the six-nation bloc is now expected to be 2.9pc as compared to the previous forecast of 3.6pc.

The main factor contributing to the lower oil GDP growth expectation this year is the Opec+ related curbs in oil production in which the bloc has announced its plans to cut 3.66 mbpd or 3.7pc of global supplies.

GCC real oil GDP growth is expected to fall to 1pc this year after witnessing an expansion of 12.4pc in the previous year.

Non-oil GDP, on the other hand, is estimated to grow faster at 4.2pc this year as against 3.7pc projected by IMF earlier.

“Oil exporters should carefully manage oil revenues, avoid expanding current expenditures, improve budget transparency, and strengthen medium-term fiscal frameworks,” commented Jihad Azour, Middle East and Central Asia director at IMF.

On the fiscal front, the IMF continues to forecast fiscal