- The Kingdom’s Ministry of Finance stated that the Arab league’s smallest economy is well ahead of its targeted deficit reduction schedule and is already the prime focus on the Kingdom’s agenda.
- During the first half of 2019, Bahrain has proudly announced that it has narrowed down its budget deficit to BD404 million ($1.07 billion).
The Ministry of Finance and National Economy stated in a statement carried out by Bahrain News Agency that “The Kingdom and Arab league’s smallest economy is well poised of its set target reduction schedule” post the deficit tumbled further down to BD650 million in the same period the previous year.
The previous month, a report published from the Institute of Chartered Accountants in England and Wales (ICAEW) and Oxford Economics stated that the Kingdom’s overall economic outlook for the remainder of 2019 remains “challenging” due to
· Vulnerability amongst the Government Finances.
· Curbed down prospects for the Oil sector growth and
· As well as a general slump in the growth of non-oil (Private) Sector Economy.
According to the ICAEW’s report, although budget deficit narrowed down and economic stability is predicted soon, the overall economic growth in the kingdom, however, witnessed a drastic decline as it slumped more than halved the previous year from 3.7 as reported in 2017 to 1.8 in 2018 and further down to 1.6 in 2019.
ICAEW stated that 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 in 2019. Bahrain, which does not benefit from the vast oil wealth of other Gulf Arab states, the previous year has released a plan to fix its debt-burdened finances after securing a $10 billion Gulf aid pledge.