The smallest Gulf Cooperation Council economy may see a deficit that is equal to 6.1 percent of its gross domestic product this year, as spending is expected to reach $9.2 billion, the bank said in an e-mailed report today, citing a Finance Ministry draft budget.
Bahrain based its fiscal budget on oil prices of $90 per barrel, $10 more than a year ago and more than double the price it used in 2010, the bank said. The kingdom will need an oil price of $103.80 to break even, the bank forecast.
To contact the reporter on this story: Wael Mahdi in Manama at firstname.lastname@example.org
To contact the editor responsible for this story: Andrew J. Barden at email@example.com