Arabian Business, Thursday, Aug 8, 2019 | Zul Hijjah 7, 1440
Bahrain says budget deficit narrows to $1bn in H1
Bahrain has announced it has narrowed its budget deficit to BD404 million
($1.07 billion) in the first half of 2019.
The kingdom is "well ahead of its projected deficit reduction schedule", the
Ministry of Finance and National Economy said in a statement carried by Bahrain
News Agency after the deficit fell from BD650 millionin the same period a year
Last month, a report from the Institute of Chartered Accountants in England and
Wales (ICAEW) and Oxford Economics said Bahrain’s economic outlook for the
remainder of 2019 remains “challenging” due to weakness in government finances,
limited prospects for oil sector growth and a general slowdown in the non-oil
According to ICAEW’s report, economic growth in the kingdom more than halved
last year from 3.7 percent in 2017 to 1.8 in 2018, with further deceleration
seen in 2019 to 1.6 percent.
ICAEW said it expects a range of measures to be taken to reduce the fiscal
deficit from an estimated 10.1 percent of GDP in 2018 to around 7 percent of GDP
Bahrain, which does not benefit from the vast oil wealth of other Gulf Arab
states, last year released a plan to fix its debt-burdened finances after
securing a $10 billion Gulf aid pledge.