No let-up for Bahrain’s economy, as debt costs build, political discord continues
Issue 1016
- 03 Jun 2016
| 4 minute read
$50/bbl oil has been welcomed across the Gulf, but crude prices are still nowhere near the level needed for Bahrain to cover its costs; the International Monetary Fund calculates that $95/bbl-plus oil is needed to balance its books. In the meantime, Bahrain is having to borrow more. Moody’s Investors Service predicts that government debt could equal the island state’s entire gross domestic product within three years. General government debt was just 13% of GDP in 2008, but reached 59% in 2015 and could rise to 100% by 2019, the ratings agency said in an extensive report published on 24 May.
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