High oil prices along with fiscal and monetary easing has helped limit the impact of domestic unrest and the crisis in the euro zone on Bahrain’s economy, the International Monetary Fund (IMF) said.
In a new report on the Gulf kingdom, the IMF said the country’s break-even oil price reached $114 a barrel in 2011 — the highest level in the GCC —compared to just $80 in 2008.
It added that expenditure commitments were increased permanently through wages — a 15 percent salary increase was awarded for all civil servants in August.
However, the IMF’s executive board also said the impact on the 2011 budget had been offset by a sharp increase in oil revenues reflecting high global oil prices.
Arabian Business
2 May
