“Standard & Poor's” has revised Bahrain's outlook from "positive" to "stable," citing spending pressures that will worsen the fiscal deficit further than previously expected. The agency maintained Bahrain's rating at "B+/B", amid expectations that the government will implement measures to reduce the budget deficit while benefiting from additional support from other Gulf countries if needed.
The agency expects the government to activate reforms to strengthen its fiscal position, largely by increasing non-oil revenues until 2026. The agency expects the fiscal deficit to be between 3 and 4 percent of GDP in 2023-2026, compared with 2 to 3 percent in its previous review.
Source (Al-Sharq Al-Awsat Newspaper, Edited)
