IMF: Bahrain growth to 3.3% in 2026 against rising fiscal pressure
Bahrain · 31 weeks ago
On 23 January 2026 the IMF Executive Board concluded its Article IV consultation with the Kingdom of Bahrain. The authorities did not consent to publication of the staff report prepared for the consultation.
Real GDP growth moderated to 2.6% in 2024 amid a contraction in oil output, supported by the non-hydrocarbon sector which expanded 3.7% with financial services the largest contributor. Growth is expected to rise to 2.9% in 2025 and 3.3% in 2026, as crude production recovers and expanded refinery capacity comes fully online, alongside robust activity in financial services, tourism, logistics and the digital economy.
The fiscal position, by contrast, has worsened: the overall deficit reached 11% of GDP and gross government debt rose above 133% of GDP in 2024. Directors stressed the need for well-designed, sustained medium-term fiscal consolidation, and welcomed recently announced fiscal initiatives including a corporate income tax and other revenue-raising measures, together with energy and utility price reforms.
Source: International Monetary Fund — imf.org