Bahrain’s economic growth is picking up, driven by strong performance in the non-oil segment of the economy, the IMF says in its recently completed Article IV assessment of the kingdom. After the economy contracted by 4.9% in 2020 amid the Covid-19 pandemic, “the recovery was supported by a strong performance in non-hydrocarbon manufacturing as well as by the retail trade and hospitality sectors,” says the IMF.
But beyond the positive near-term picture, the IMF warns that economic challenges remain. “Over the medium-term, growth is set to stabilize at 3%. However, declining oil prices will put pressure on the medium-term fiscal deficit and public debt is projected at 127% of GDP by 2027.” (CONTINUED - 1065 WORDS)