IMF raises Bahrain’s economic growth forecast

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

The International Monetary Fund yesterday raised its growth forecast for

Bahrain’s economy, as it said it also expects most other economies in the Gulf to do the same.

The fund said that it now expects most Gulf economies to recover this year at a ‘faster pace’ than previously estimated, as it raised its 2021 global growth forecast to 6% from 5.5% less than three months ago.
IMF forecasts the economy of Bahrain to grow 3.3% this year versus a forecast of 2.3% in October, the IMF said in its latest World Economic Outlook, released this week.

Saudi Arabia’s economy, the largest in the region, is expected to grow 2.9% this year, up from the 2.6% forecast in January.

Saudi Arabian economy contracted 4.1% last year due to the twin shock of the COVID-19 pandemic and lower oil prices...

The United Arab Emirates, the Gulf’s second-largest economy, will see a growth of 3.1% this year rebounding from a 5.9% contraction in 2020, the IMF said. In October last year, it had forecast a 6.6% drop in 2020 and 1.3% growth this year.

Oman saw the biggest positive revision of the Gulf countries, from expectations of a 0.5% contraction this year to a forecast of 1.8% growth.

Forecasts for Kuwait and Qatar remained almost unchanged, with Kuwait expected

to post 0.7% growth this year, up from an October estimate of 0.6%.

Qatar’s economy is estimated to grow 2.4%, just below the previous 2.5% estimate.

The IMF on Tuesday said un- precedented public spending to fight the COVID-19 pandemic, primarily by the United States, would push global growth to 6% this year, the fastest pace since 1976