The Bahraini economy had a difficult year in 2020, hit by the dual challenges of the global coronavirus pandemic and the low oil price environment. As a result, the country’s gross domestic product (GDP) is estimated to have shrunk by more than 5%, with sectors such as tourism and real estate hit especially hard.
In August, Fitch Ratings downgraded Bahrain’s long-term foreign-currency issuer default rating from BB– to B+, with a stable outlook reflecting the combined impact of lower oil prices and the pandemic.
