gulfnews : High economic toll of Bahrain's unrest

Bahrain's economy continues to reel under socio-political unrest dating back to mid-February. Costs include a drop in economic activity apart from a higher budget deficit.

It emerged recently that the unrest caused economic damage of up to $2 billion (Dh7.3 billion). This is a sizable amount by virtue of equalling 9.5 per cent of gross domestic product (GDP). Bahrain has a nominal GDP of $21 billion. The comments came from a qualified person, namely Esam Fakhro, chairman of the Bahrain Chamber of Commerce and Industry (BCCI). The Chamber looks after private sector interests.

Ostensibly, the econ-omic costs relate to damage occurring to some economic sectors notably retail, hospitality and events. Reflecting the uncertainty, some locals have chosen to limit their spending to essentials, and where possible delay purchases of durable goods.

* username: rupertbu