Wednesday 1 February 2012

FEATURE-Unrest weighs on Bahrain economy's recovery | Reuters

Bahrain's economy is rebounding on the back of heavy government spending and support from its neighbours, but a full recovery may be out of reach if anti-government protests continue.

A year after mostly Shi'ite demonstrators launched protests against Bahrain's Sunni Muslim rulers, demanding an end to sectarian discrimination and more say in government, authorities are seeking to quell discontent by doling out benefits to citizens: higher salaries, housing and better infrastructure.

But the spending has had only limited success in reviving the island kingdom's reputation as a regional banking, trading and Islamic finance hub, as unrest continues on the outskirts of the capital Manama.

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