Bahrain Central Bank Expects Real GDP to Grow 3.1% in 2021

The Central Bank of Bahrain is seen in Manama, Oct. 27, 2013. (Reuters)
The Central Bank of Bahrain is seen in Manama, Oct. 27, 2013. (Reuters)
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Bahrain Central Bank Expects Real GDP to Grow 3.1% in 2021

The Central Bank of Bahrain is seen in Manama, Oct. 27, 2013. (Reuters)
The Central Bank of Bahrain is seen in Manama, Oct. 27, 2013. (Reuters)

Bahrain's Central Bank Governor, Rasheed Mohammed al-Maraj, said in an interview published on Sunday he expects the real gross domestic product to grow 3.1 percent in 2021.

Bahrain's annual real GDP growth reached 5.7 percent in the second quarter of 2021, pushed by the growth in the non-oil sector resulting from the recovery of the sectors most damaged by the coronavirus pandemic such as transportation and tourism.

The GDP is expected to continue to grow in the third and fourth quarters of 2021, Maraj said.

He noted that international bond issues denominated in US dollars were made with an amount of $4.5 billion during 2021. International bonds worth $1.475 billion were due during the same year.

The governor told local newspaper Albilad that foreign reserves increased to 1.63 billion dinars in September, and they were expected to keep growing because of the expected increase in revenues due to higher oil prices.



Gold Slips as US Bond Yields Rise, Investors Assess New Tariffs

Gold rings are displayed in a gold shop in Chinatown in Bangkok, Thailand August 21, 2018. REUTERS/Soe Zeya Tun/File Photo
Gold rings are displayed in a gold shop in Chinatown in Bangkok, Thailand August 21, 2018. REUTERS/Soe Zeya Tun/File Photo
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Gold Slips as US Bond Yields Rise, Investors Assess New Tariffs

Gold rings are displayed in a gold shop in Chinatown in Bangkok, Thailand August 21, 2018. REUTERS/Soe Zeya Tun/File Photo
Gold rings are displayed in a gold shop in Chinatown in Bangkok, Thailand August 21, 2018. REUTERS/Soe Zeya Tun/File Photo

Gold prices eased on Tuesday, weighed by higher US Treasury yields as US President Donald Trump announced new tariff proposals on trading partners, including Japan and South Korea.

Spot gold was down 0.2% at $3,328.67 per ounce, as of 1207 GMT. US gold futures fell 0.1% to $3,338.20.

The yield on benchmark US 10-year notes rose to a two-week peak, making the non-yielding bullion less attractive.

"Gold is stuck between a rock and a hard place," said UBS commodity analyst Giovanni Staunovo, Reuters reported.

"Negative for the gold price is the US decision to extend the deadline for a trade deal for many trade partners, positive for the gold price is the fact that key US trading partners in Asia might have to deal with higher tariffs in the near future, weighing on economic growth prospects."

On Monday, Trump told 14 countries that sharply higher tariffs would start on August 1, marking a new phase in the trade war he launched in April, with levies between 25% and 40%.

The new deadline was firm, Trump said, adding that he would consider extensions if countries made proposals for a trade deal.

"Reciprocal tariffs" were to be capped at 10% until July 9 to allow for negotiations, but so far, agreements have been reached only with Britain and Vietnam. In June, Washington and Beijing agreed on a framework covering tariff rates.

Meanwhile, China has warned the Trump administration against reigniting trade tensions and threatened to retaliate against nations that strike deals with the US to exclude it from their supply chains.

Trump's tariffs have stoked inflation fears, further complicating the US Federal Reserve's path to lower interest rates.

Investors await minutes of the Fed's June meeting, due on Wednesday, for more clues into the bank's policy outlook.

Spot silver fell 0.1% to $36.71 per ounce, platinum rose 0.2% to $1,372.51, and palladium rose 0.6% to $1,117.33.