BMI issued an updated macroeconomic forecast for Bahrain wherein it projects a growth of 7% in 2006 and 6.7% in 2007, dropping to an average 4.8% in 2008-10 as oil prices decline. Since BMI has revised its oil price forecast, it also upped its forecasts for Bahrain's real growth, exports, government surplus and foreign reserves.
This reflects both the direct impact of higher oil-sector revenue forecasts, given that oil accounts for one-quarter of GDP.
