Bahrain to post robust growth

Bahrain economy is expected to clock a growth rate of 4 per cent in 2016, a big jump from the 2.5pc growth expected for 2015, said Marios Maratheftis, Chief Economist at Standard Chartered Bank here, while addressing the media at the Global Research briefing.

He said the GCC countries will weather the current challenges as the region has have prudently made use of past savings to absorb shocks to their domestic economies. He added that the outlook for GCC economies appears moderately better than earlier this year and regional policy makers now have a real opportunity address fiscal shortfalls by tackling high energy subsidies, bond issuance will also help governments fund expected fiscal deficits this year.

The Standard Chartered Chief Economist added that Asia is currently driving global growth in line with the bank’s expectations and key challenge for Asia is the slow execution of infrastructure projects in countries such as Thailand, Philippines, Indonesia and to a lesser extent India.

Maratheftis added that Fed will not take interest rates as high as markets expect and global economic growth is expected to be at 3pc. Although concerns about China are justified, the bank expects a pick-up in activity in fourth quarter as policy stimulus begins to take effect, avoiding a hard landing.