Bahrain’s fiscal balance program announced in October 2021 is on track, according to the World Bank. The program has led to an increase in revenues during the first half of 2022, which has compensated for increases in spending, resulting in a surplus of $88 million in public finance.
This has led to an improvement in public debt, according to World Bank regional director for the GCC, Essam Abu Sulaiman. He also noted that Bahrain’s economy is continuing its gradual recovery, with a growth rate expected to stabilize at 3.2% this year, mainly driven by the non-hydrocarbon sector and strength of the manufacturing industry.
Sulaiman stressed the importance of Bahrain’s economy focusing on green investments, adopting a green growth strategy, and continuing to invest in the non-oil sector. He emphasized that Bahrain is capable of becoming one of the leading countries in the production of renewable energy.
However, he warned of potential risks to these expectations, including intensification of geopolitical conflicts, increase in adverse conditions leading to stagflation, escalation of instability in the financial sector, and other challenges. He also noted that the global growth rate is expected to slow sharply to 1.7% this year, the third-weakest pace in nearly three decades.
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