How does Bahrain’s general economic environment affect the financial sector?
Buoyed by the solid performance of the non-oil sector, Bahrain’s economy has maintained steady growth throughout 2016, though future development could be impacted by rising public debt.
A continued flow of investments in infrastructure looks set to maintain Bahrain’s upward trajectory in the second half of this year, with non-hydrocarbons sectors helping to drive the country’s fastest growth rate in two years.
Ramped-up investment programmes and solid private sector expansion helped sustain Bahrain’s economic growth in 2015, albeit at a slower pace than in previous years.
Lower oil prices are likely to moderate Bahrain’s economic growth this year, though a strong non-oil sector, along with a sustained programme of state investment, should underpin GDP expansion into 2016 as oil markets await renewed demand.
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