World Bank raises forecast for Bahrain’s economic growth by 3.5% this year

TDT | Manama    

The Daily Tribune – www.newsofbahrain.com

The World Bank expects the Bahrain economy to further grow despite lowering its forecast for global economic growth. According to the international financial institution’s latest Global Economic Prospects report, the GDP projections for Bahrain have been revised upwards, from January 2022’s 3.2% to 3.5%, and from January 2023’s 2.9% to 3.1%.

This rise confirms the progress of Bahrain in the right direction in its development plans, the most important of which is the Economic Recovery Plan. The World Bank releases its own forecasts twice a year, every January and June.

The report offers a systematic assessment of current global economic conditions amid the existing pandemic and other global challenges such as the Ukraine-Russia conflict. Earlier, Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa had said that the Kingdom’s economy has “recovered” and is moving towards achieving financial stability and development sustainability that will benefit the citizens and have an impact on the nation’s overall progress.

He highlighted the positive indicators that have been achieved in various targeted sectors in the Kingdom, among them the implementation of the five priorities of the Economic Recovery Plan, namely creating job opportunities for citizens, and developing legislation and policies, financial market sector, financial services and financial technology, and the insurance sector.

The Economic Recovery Plan comprises 27 integrated programmes, and 16 of the 27 programmes included in the plan have been completed, while work is underway to implement 11 programmes during the coming period.

Shaikh Salman thanked His Majesty King Hamad bin Isa Al Khalifa and His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister, for the great leadership offered in implementing the Economic Recovery Plan.

The implementation of the priorities and programmes will continue, and the pace of achievement will be accelerated while ensuring the highest possible efficiency and quality levels as planned, he added.

Bahrain’s improving economy can also be attributed to the government’s move to launch the BD4.5 billion stimulus package last year to support the sectors hardest hit by the pandemic and protect citizens’ jobs through the fiscal balance programme.

Global growth forecasts Meanwhile, the World Bank’s global growth for 2022 has been revised down from 4.1% to 2.9%, reflecting a considerably slow growth from 5.7% in 2021 Middle East and North Africa’s 2022 growth prospects have been revised upwards by 0.9 percentage points to 5.3% The report indicates that the war on Ukraine and the two years of the pandemic have sharply hastened the deceleration of global economic activity.