Inflation Rates in Bahrain - Essay Example

The rate of inflation in 2010 was 3.3% which was up sharply from the reported 2.8% in 2009. One author from the Wall Street Journal wrote, “In its statement, Egypt's Central Bank said deteriorating regional political circumstances, including a civil war in Libya as well as violence in Syria, Yemen and Bahrain, could drive up oil prices and further slow the continuing global economic recovery.” (Bradley)

The Bahrain Economic Development Board is positive in the most recent release, “In Q4 2010, the Bahrain economy is expected to post similar growth to that seen in the third quarter growth…over 4%” (Bahrain Economic Quarterly p. 4). Overall there is growth occurring especially in the tourism section as oil only accounts for approximately 15% of the economic outlook. With the civil unrest and potential for continuing problems, there may be a drop in tourism as a result. It will be necessary to see what the results are before making long-term forecasts.