Bahrain 'to post 2.9pc growth next year'
Manama, December 6, 2012
Bahrain should achieve economic growth of 2.4 per cent this year and that should rise to 2.9 per cent next year, said investment bank Merrill Lynch in its outlook for 2013.
That is against a rise of global growth from 3.1 per cent to 3.2 per cent next year but at a time when the bank is predicting a dip in US growth from 2.1 per cent to 1.5 per cent and a continued slight recession in the euro zone.
Bahrain and much of the region were positive because of the strength of oil and continuing diversification, Johannes Jooste, Merrill Lynch head of strategy for Europe, the Middle East and Africa, was quoted as saying in our sister publication, the Gulf Daily News.
But he said that investors across the globe should now look to disinvest in bond markets and look to equity markets for growth in the medium term.
"Investors should position for the great rotation out of fixed income and into equities that is likely to begin in 2013,” he said.
"The economic and market outlook for the coming year is brighter than in 2012. There is increased evidence of the Federal Reserve's progress in rekindling the US economy and even a gradual euro zone recovery in prospect during the second half.
"In addition, in China growth is forecast to improve slightly. This leads us to favour equities over bonds in 2013. The notable valuation gap between the two asset classes, now at its most favourable level for stocks in over 25 years, adds to our conviction here," he added. – TradeArabia News Service
More Finance & Capital Market Stories
- Saudi non-oil sector posts solid growth in Feb
- Seera total income rises to $34m
- NBAD approves 40pc cash dividends
- NBAD sees 8-10pc loan growth
- Al Basel Group launches investment arm
- Union Insurance posts $18m profit
- Oman warns banks on conflicts of interest
- Japan to lend Tunisia $480m
- 400 to join anti-laundering seminar in Riyadh
- Lebanese insurer to head Prague Club
- UAE's first REIT plans $135m IPO
- Bahrain banking industry outlook 'positive'
- New India Assurance opens Bahrain branch
- Qatar sets up mixed business incubator
- Kuwait budget spending up 8pc in April-Jan
- Thomson Reuters to host Mena IFR awards
- ADIB offers smartphone industry investment
- Gulf Finance House to start $3bn Tunisia project
- KFH completes ICT project upgrade
- Egypt urban annual inflation slows to 9.8pc
- BIBF signs deal with Palestinian institute
- Bahrain’s GDP set to expand 12pc
- KFH-Bahrain rebrands priority banking
- Bank Nizwa wins top Islamic bank award
- Qatar labour costs may jump: IMF
- Kuwait Q3 trade surplus hits $23bn
- Dubai trade growth up 7.6pc to $362bn
- Deloitte appoints new managing director
- Al Ramz tops UAE trading in Feb
- IFC in $150m loan deal with Bank Audi