Bahrain's economy shrank by 2.11 percent in the first quarter of this year, compared to a year ago, affected by the decline in the non-oil economy, due to the imposition of Covid-19 restrictions most of the quarter. While the non-oil economy contracted by 2.97 percent, the hotel and restaurant sector fell by 20.44 percent, and the oil sector grew by 2.04 percent. The GDP also contracted by 0.10 percent, compared to the previous quarter.
Bahrain's budget deficit rose to 18 percent of gross domestic product last year, according to the International Monetary Fund, which estimates that a 35 percent rise in Brent crude, since December, will lead to nearly $70 a barrel, which will help narrowing the gap to 9 percent this year, but that will still be one of the highest levels in the Middle East.
The data released by the government at the beginning of last April, showed that Bahrain's gross domestic product contracted by 5.81 percent during 2020 on an annual basis, under pressure from the repercussions of the Corona pandemic and the decline in oil prices. While the estimates of Fitch Ratings Agency showed, at the end of last April, that Bahrain needs a price of about $100 a barrel to achieve a balance in the 2021-2022 budget.
Source (The New Arab Newspaper, Edited)
