Mubasher: Bahrain's Economic growth is set to soften further in 2016 as lower oil prices continue to act as a damper on public expenditure and investment growth, said a recent report compiled by NBK Economic Research at NBK Capital.
Real GDP growth is expected below 2% in 2016 on depressed oil prices, said NBK.
Meanwhile, NBK foresees a pick-up in 2017 on the back of a potential recovery in oil prices and as the non-oil sector gathers pace.
Bahrain's inflation also is projected to come in higher in 2016 and average 2.5%, predominantly due to subsidy cuts.
The country's budget deficit is set to widen further in 2016, to 17% of GDP, as oil revenues remain weak.
Moreover, the Bahraini banking sector is expected to face some liquidity constraints until at least the end of 2016, on the back of tepid deposit growth.
