Mubasher: Bahrain's gross domestic product growth is expected to fall to 2.2% in 2016 from 3.2% in 2015 and 4.5% in 2014, said the International Monetary Fund (IMF).
The country's budget deficit will remain elevated at 15% of GDP, causing debt to increase substantially.
The IMF urged the kingdom to take sizable steps to reduce its growing budget deficit as slumping oil prices have sharply reduced exports and government revenues.
An IMF team is currently meeting with Azeri officials in Baku on a fact-finding mission, discussing technical assistance and assessing possible financing needs.
Near-term fiscal measures could include the implementation of a previously agreed value added tax, reducing spending on social transfers and freezing public-sector wages, the IMF said.
Fiscal consolidation will help support Bahrain's dollar peg, the IMF said, adding that Bahraini banks' strong capitalization and liquidity will help them weather a slowdown in growth.
