– Economies in the region were hit by reduced trade volumes and lower oil prices
– Governments launched extensive stimulus packages to stabilise their economies
– Short-term recovery will be tied to oil prices and the resumption of travel
– The pandemic looks set to accelerate economic diversification efforts
Simultaneously strengthening its industrial potential and its foreign commercial ties, Bahrain has signed a series of deals with Italian firms in the energy and manufacturing sectors.
Despite ongoing fiscal challenges, Bahrain’s economy proved resilient throughout 2019, with the World Bank projecting growth of 1.8%. While expansion of the non-oil economy is expected to slow from 2.5% to 2.2%, the oil sector is due to move back into the black (0.2%), reversing the 1.2% contraction recorded the previous year.
Bahrain is capitalising on the recent visit of Narendra Modi, Prime Minister of India, with the two countries signing a raft of collaboration agreements amid ongoing economic cooperation.
A mixture of spending cuts, revenue-raising measures and financial support from regional neighbours will form the core of Bahrain’s newly unveiled programme designed to reduce its deficit and return to surplus by 2022.
Strong non-oil sector and foreign direct investment (FDI) growth combined to deliver Bahrain momentum through 2018, with the country’s biggest hydrocarbons discovery in decades expected to strengthen its fiscal position in the years ahead.
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