All Or Nothing: The Fiscal Perils Of Oil Dependence

BMI View: Bahrain's 2009 budget deficit is small compared with those of much of the developed world but there are reasons for serious concern. The level of dependence on the oil sector makes the 2010 outcome unpredictable. Oil prices at current levels would mean a swift return to surplus, but in light of gathering macroeconomic headwinds in the developed world and even China, this is not a given. Meanwhile, sovereign debt levels have risen rapidly.

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