The International Monetary Fund expects Bahrain’s economy to gradually recover from the "Covid-19" pandemic, so that growth this year will reach 3.3 percent after a contraction of 5.4 percent, with the largest growth rate among the economies of the Gulf countries. The UAE came as the second growing Gulf country in terms of the IMF forecasts, with a growth rate of 3.1 percent, followed by Saudi Arabia by 2.9 percent, Qatar 2.4 percent, the Sultanate of Oman with 1.8 percent, and finally Kuwait with a growth rate of 0.7 percent.
According to the IMF, Bahrain moved quickly to deal with the health and economic repercussions of the "Covid-19 pandemic," as it rushed to make vaccines available to those most in need and provided liquidity to companies severely affected by the restrictions of the comprehensive closure. The expected growth this year at 3.3 percent is consistent with an expected recovery of 3.9 percent in the non-oil sector, supported by widespread vaccine distribution.
The IMF indicated that once the recovery intensifies, there will be a need for an ambitious and growth-friendly fiscal adjustment set within a reliable medium-term timeframe to address the large imbalances in Bahrain, put the government’s debt on a steady downward path, and restore the macroeconomic sustainability. The amendment will also help rebuild external reserves and strengthen the exchange rate peg, which continues to meet Bahrain's needs as a pillar of monetary policy, and support access to sustainable external financing.
Source (Al-Ayyam Newspaper-Bahrain, Edited)
