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.

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