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Bahrain's economic growth in 2012 is likely to stand at around three per cent, the lowest in the GCC. Growth is assisted by an economic development package from the GCC, which began this year.
Whether higher development spending will help ease social and political strains remains uncertain. Higher political risk perceptions, if they persist, will likely make it harder to generate the private sector growth required to absorb the expanding Bahraini workforce over the coming years.
(Research by Kuwait Financial Centre (Markaz); financial data from Reuters July 31 2012).