Slowing Economy in 2011 for Bahrain

The Bahraini economy is suffering as a result of the ongoing protests and labor disputes (as posted earlier).

The Bahraini government just sold a $750m Islamic bond in an attempt to make up for its trade deficit. The economy is expected to shrink from 4% to 1.5% in 2011. If this trend continues, along with the trade problems with the United States, the protests are likely to increase in strength and size in the future.

In this CSIS report, it is clear that Bahrain has important oil ties with Iran. If the strife continues to increase between these countries, this also may compound the situation.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s