"Standard & Poor's" agency expects the Bahraini economy to resume its growth during the next year, after a sharp contraction this year. Indicating that the Bahraini economy will achieve growth during the next year by about 3.5 percent, and that the average growth during the years 2022 and 2023 will reach 2.3 percent.
According to the agency, this growth will follow a sharp contraction in Bahrain’s economy this year, amounting to 5 percent. Indicating that the relatively diversified Bahraini economy will benefit from its proximity to the large Saudi market, as well as from the regulated financial sector, and a well-educated workforce. In addition, financial aid from the Gulf States of $ 10 billion will partially cover Bahrain's financial needs through 2023.
Regarding the banking sector, Standard & Poor's revealed that the Central Bank of Bahrain's measures to confront the emerging coronavirus has been effective so far. The non-performing loan ratio is expected to reach 10 percent in 2020, compared to 8 percent in 2019. It also expects credit losses to increase to 180 basis points in the current and next years, compared to 80 basis points in 2019.
Source (Al-Arabiya.net, Edited)
