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FINANCIAL NEWS
Bahrain’s budget deficit to hit 12.5 percent of GDP in 2015
07 Dec 2015
(MENAFN) Fitch Ratings, one of the three nationally recognized statistical rating organizations (NRSRO) designated by the U.S., has revised Bahrain’s outlook to negative from stable, based on reports.
The alteration came as the organization projects a wider double-digit budget deficit of 12.5 percent of GDP in the kingdom in 2015, let alone that low oil prices continue to impact the nation’s economy.
Additionally, the country’s fiscal adjustment measures presented so far have proven insufficient to offset lower oil prices, as social and competitiveness restraints hinder the pace of policy response.
Furthermore, beside the 12.5 percent of Gross domestic product budget deficit this year, there will be a 10.7 percent in 2016 remaining in high single digits by 2017, up from 5.5 percent of GDP in 2014.
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