The Bahraini economy will recover in 2017 on higher oil prices and non-oil output, National Bank of Kuwait (NBK) says in a report released today,.
“Real GDP growth is poised to hold in 2016 on signs of resilience in the non-oil economy,” NBK says. “We expect growth to pick up in 2017 on a potential recovery in oil prices and as the non-oil sector gathers momentum.”
NBK projects that Inflation will rise to 2.5 per cent in 2016 as a whole and to hold steady in 2017.
“The budget deficit is set to widen further in 2016 to 17 per cent of GDP as oil revenues remain weak,” NBK says. “The banking sector continues to face liquidity constraints, on subdued deposit growth.”