According to the Bahrain’s state news agency (BNA), Bahrain reported a budget deficit of 381 million Bahraini dinars ($1.01 billion) in the first half (H1) of 2023. This announcement came after a joint meeting between government and legislative authorities.
Read more: Bahrain’s economic recovery plan expected to narrow budget deficit
Total revenues in Bahrain reached 1.44 billion dinars by June 30, while spending amounted to 1.82 billion dinars, which was 2 percent lower than the estimated amount. As a result, a fiscal deficit was incurred.
In June 2023, Bahrain’s Ministry of Finance announced that its overall budget deficit in 2024 is expected to narrow down to 161.4 million Bahraini dinars ($428.16 million) from a deficit of 520 million dinars in 2023. The latest budget statement shows that while total spending will remain at around 3.6 billion dinars for both years, total revenues are forecast to increase to 3.47 billion dinars in 2024 from 3.1 billion dinars in 2023, mainly due to an increase in oil and gas revenues.
Bahrain reported a GDP growth rate of 4.9 percent in 2022, the highest since 2013. Like its neighbors, Bahrain has been working on diversifying its economy away from oil, with non-oil GDP growing by 6.2 percent last year, the highest since 2012.
Bahrain’s Ministry of Finance has announced that its overall budget deficit in 2024 is expected to narrow down to 161.4 million Bahraini dinars ($428.16 million) from a deficit of 520 million dinars in 2023.
Read more: Bahrain B+/B ratings affirmed, outlook remains positive
Economic recovery
The government launched an economic recovery plan in October 2021, which includes a new “golden license” aimed at attracting large-scale investment projects to Bahrain and boosting growth and job creation.
Driven by non-oil growth and despite a decline in the oil sector GDP, Bahrain’s economy witnessed a 2 percent expansion in the first quarter of 2023.
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