Bahrain's sound economic fundamentals and core strengths have come into play with growth indicators reflecting the revival in sentiment.
Central Bank of Bahrain Executive Director of Banking Supervision Khalid Hamad told DT that the banking industry is in good health with loans and advances registering growth of 6.2 per cent as at end-July 2012, when compared with July 2011. Over the same period, deposits and balance sheets have grown 8pc and 4.5pc respectively, he added.
Mr. Hamad spoke on the sidelines of the opening of the sixth branch of Khaleeji Commercial Bank in Riffa.
The country's GDP is expected to grow by 4-5pc in 2012, driven primarily by increases in crude oil production, manufacturing and government spending, the Economic Development Board (EDB) had said in the latest Bahrain Economic Quarterly report issued earlier.
As for sectoral outlook for the current year, the report said while a fall in private sector demand and oversupply of commercial properties has slowed construction, government spending is projected to compensate and fuel construction for infrastructure, social housing and other social spending projects such as schools and hospitals.
The budgeted $10 billion ten-year GCC fund is likely to be dedicated to projects such as these, in addition to already planned spending by the government. The increase in oil output and high oil prices are also expected to produce large current account surpluses.