Bahrain’s MoFNE Expects a 2021 Budget Deficit of BHD 1.1-1.2 Billion Amidst 5.0% Economic Growth

Bahrain’s Ministry of Finance and National Economy (MoFNE) has forecast a budget of BHD 3.6 billion, with revenues expected at BHD 2.4 billion for 2021. This is expected to lead to an expected deficit of BHD 1.1-1.2 billion (approximately USD 3.2 billion). According to local media sources in Bahrain, these figures have been forecast at an oil price assumption of USD 50 per barrel.

Why it matters?

The Government of Bahrain expects economic growth to come in at 5.0% in 2021, following a 5.4% economic contraction in 2020 (according to IMF estimates) resulting from the impact of COVID-19 on key sectors such as energy and tourism. The country’s debt level has been mounting since the 2014-15 oil price shock. In 2018, Bahrain’s Gulf allies furnished USD 10 bill...