Macroeconomic Forecast Bahrain - Macroeconomic Forecasts

Our core view sees Bahrain's economy posting relatively moderate rates of real GDP growth over the coming years. Elevated government spending will help support the economy at a time when fixed investment remains muted. We forecast real GDP expanding 2.9% in 2012, following an estimated 1.9% in 2011. The economy's medium-term outlook remains dependent on the trajectory of the political crisis, with a failure to find a lasting solution likely to undermine growth through 2016.

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