Finance Minister: Bahrain’s economic stimulus package has prepared groundwork for recovery

TDT | Manama

Minister of Finance and National Economy Shaikh Salman bin Khalifa Al Khalifa provided yesterday a comprehensive policy review of measures adopted in response to the coronavirus (COVID-19) pandemic, at a virtual meeting with members of the Shura Council and House of Representatives Finance and Economic Affairs Committee.

Since the early stages of the global COVID-19 crisis, Bahrain has responded carefully and proportionately with a range of economic policies that have successfully minimised the economic impact of precautionary health measures, whilst at the same time protecting the health of citizens and residents.

Significant public resources have been directed to protect vulnerable industries, support the labour market and stimulate economic activity. A BD4.3billion economic stimulus package was introduced in March to maintain private sector operations and local employment, as well as provide targeted liquidity injections.

The economic stimulus package, which amounts to 32.2 per cent of GDP, has bolstered economic activity and prepared the groundwork for recovery, evidenced by the improvements in the volume of cash withdrawals, Point-of-Sales (POS) data, and total exports for the month of May.

The economic stimulus package comprised increasing the size of the Liquidity Support Fund to BD200million and providing support through Tamkeen’s Business Continuity Support Programme, which aims to grow the economic contribution made by small and micro enterprises in the Kingdom.

“Bahrain remains prepared to introduce further economic measures if required, and we continue to closely monitor and assess the potential vulnerabilities in each of our economic sectors,” said the Finance Minister.

“Consistency and alignment between the Legislative and Executive Authority has favourably positioned Bahrain to benefit from future recovery by carefully navigating the trade-offs required between a decline in Government revenue, an increase in the budget deficit and an increased need for Government funding.”