Bahrain Year in Review 2014 | glObserver Global Economics


While a combination of high break-even prices and lower levels of fiscal reserves could see falling oil prices push Bahrain further into the red, the kingdom is still set to post respectable economic increase for the year, buoyed by a solid performance from its non-hydrocarbons sector.

Source: globserver.cn

Bahrain is coming under pressure due to its relatively low levels of reserves and high break-even prices, with oil needing to return to $117 per barrel for Bahrain’s budget to balance this year, according to a statement issued by Moody’s Investors Service in early December. The ratings agency noted that Bahrain and Oman would be hit harder by falling oil prices than other Gulf states, while Bahrain may have to tap the markets for funds by raising additional sovereign deficit issuances in the coming year to cover its expanding deficit.

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Author: globserver

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