Bahrain’s economy is on track for growth, with gross domestic product expected to expand by 3 percent this year and 3.5 percent in 2025, the International Monetary Fund (IMF) has said.
Following its 2024 Article IV consultation, the IMF said Bahrain’s showed strong economic performance in 2023, achieving a 3 percent growth rate.
It projected that inflation, which fell to a low of 0.1 percent in 2023, will rise to 1.2 percent this year and gradually stabilize at 2 percent over the medium term.
According to the IMF, government debt surged to 123 percent of GDP, a 12 percentage point increase.
“To put government debt to GDP onto a durable downward path, a multi-year and pre-committed fiscal consolidation and reform package is the policy priority,” said John Bluedorn, the IMF mission chief.
Bahrain’s economic diversification efforts are another key focus. The IMF acknowledged the progress made but urged further reforms to boost inclusive, sustainable growth. These include expanding programs to enhance human capital, addressing skill gaps, and improving access to finance for small and medium-sized enterprises.
