Bahrain’s growth prospects robust, says EDB Chief Economist
Manama : The methodology followed by credit rating agencies for oil exporting countries like Bahrain may not be the right one, according to Economic Development Board (EDB) Chief Economist Dr. Jarmo Kotilaine.
He added that the Kingdom’s growth prospects are very robust with infrastructure sector attracting renewed investment in recent months.
Dr. Kotilaine said that EDB is very confident of achieving over three per cent growth in coming years, and the economy may gather more pace if more reforms to facilitate business are introduced.
An expected jump in inflation in 2016 to 4.8pc due to the effect of subsidy reforms will be contained soon with 2017 inflation expected to be at 2.7pc, according to the economist.
The reassurance by Dr. Kotilaine, while briefing about the recently released Bahrain Economic Quarterly Report, comes on the back of negative credit-rating actions taken by various agencies, citing the Kingdom’s vulnerabilities due to the fall in oil price.
Refuting pessimistic outlooks raised by many, he said that private investors seem to be keen to capitalise on the low-cost environment.
“Private sector is at the forefront of economic growth in Bahrain,” he noted adding that the private sector employment clocked 7pc growth in 2015 from the previous year, an indicator of good health of the economy.
The Kingdom has come a long way in achieving its vision of making non-oil sector, the engine of growth.
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