Thu, 25 June 2020
Bahrain’s Minister of Finance and National Economy, HE Shaikh Salman bin Khalifa Al Khalifa, today provided a comprehensive policy review of measures adopted in response to the COVID-19 pandemic, at a virtual meeting with members of the Shura and House of Representatives Committee on Finance and Economic Affairs.
Since the early stages of the global pandemic, Bahrain has responded carefully and proportionately with a range of economic policies that have successfully minimised the economic impact of precautionary health measures, whilst at the same time protecting the health of citizens and residents.
Significant public resources have been directed to protect vulnerable industries, support the labour market and stimulate economic activity. A BHD 4.3 billion economic stimulus package was introduced in March to maintain private sector operations and local employment, as well as provide targeted liquidity injections.
The economic stimulus package, which amounts to 32.2% of GDP, has bolstered economic activity and prepared the groundwork for recovery, evidenced by the improvements in the volume of cash withdrawals, Point-of-Sales (POS) data, and total exports for the month of May
The economic stimulus package comprised increasing the size of the Liquidity Support Fund to BHD 200 million and providing support through Tamkeen’s Business Continuity Support Program, which aims to grow the economic contribution made by small and micro enterprises in the Kingdom.
Bahrain’s Minister of Finance and National Economy, HE Shaikh Salman bin Khalifa Al Khalifa said:
“Bahrain remains prepared to introduce further economic measures if required, and we continue to closely monitor and assess the potential vulnerabilities in each of our economic sectors.
“Consistency and alignment between the Legislative and Executive Authority has favourably positioned Bahrain to benefit from future recovery by carefully navigating the trade-offs required between a decline in Government revenue, an increase in the budget deficit and an increased need for Government funding.”
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