Fast Market Research recommends "Bahrain Business Forecast Report Q1 2014" from Business Monitor International, now available
Boston, MA -- (SBWIRE) -- 12/25/2013 -- We expect Bahrain's economy to expand at a moderate pace over 2014 and forecast real GDP growth of 3.4%, down from an estimated 4.3% in 2013. Business activity in the non-oil sector will be under -pinned by elevated public spending and GCC aid, but will remain subject to political risk. Output gains in the hydrocarbon sector will be more limited than in 2013, weighing on the headline growth figure.
A return to pre-crisis rates of real GDP growth above 7% remains off the cards in the near term.
In light of record oil revenues and the weakness of private invest -ment, we expect public spending to outperform over the coming quarters, which should support activity in the non-hydrocarbon economy. Efforts to address the shortage of affordable housing will see government CAPEX accelerate.
View Full Report Details and Table of Contents
Bahrain's reputation as a stable and welcoming location to do business in the Gulf has suffered as a result of the volatile political climate. At the moment, it remains to be seen if Manama will be able to compete with Doha and Dubai in attracting investment into the all-important hospitality and financial services industry.
The economy's medium-term outlook remains contingent upon a last -ing solution being found to the current political crisis. Unfortunately, we maintain our relatively guarded outlook on the prospects that the government and opposition can come to some form of agreement in the near term, despite an ongoing national dialogue initiated in February 2013.
Key risks to outlook
A more pronounced regional crisis stemming from an uptick in ten -sions between Iran and the West could see risk premiums spike higher, particularly for Bahrain.
A marked drop in oil prices concomitant with a slowdown in growth in Europe, the US and China would pose a significant risk to the country's near-term growth outlook, and likely lead to a marked de -terioration to the country's balance of payments and fiscal dynamics. In terms of the latter, Bahrain's breakeven oil price is now close to US$120/bbl, which is by far the highest in the Gulf.
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Country Reports research reports at Fast Market Research
You may also be interested in these related reports:
- Chile Business Forecast Report Q1 2014
- Spain Business Forecast Report Q1 2014
- Hungary Business Forecast Report Q1 2014
- Russia Business Forecast Report Q1 2014
- Mexico Business Forecast Report Q1 2014
- Brazil Business Forecast Report Q1 2014
- Lithuania Business Forecast Report Q1 2014
- Australia Business Forecast Report Q1 2014
- Vietnam Business Forecast Report Q1 2014
- Kuwait Business Forecast Report Q1 2014
Copyright © 2005-2014 - SBWire, The Small Business Newswire - All Rights Reserved - Important Disclaimer
Contact Us: 888-4-SBWIRE (US) - 920-593-5640 (International)