Central Banker Report Cards 2025: Middle East
Global Finance reveals the 2025 Central Banker Report Cards in the Middle East, where central banks are preparing for 2026 inflation, but a consensus on tackling it remains elusive.
Bahrain's Economic Stability
Bahrain, the smallest economy in the Gulf Cooperation Council (GCC), remains stable, with expected GDP growth of 3.5% this year and inflation below 1%.
- GDP growth: 3.5%
- Inflation: below 1%
The dirham is pegged to the dollar, and the Central Bank of Bahrain’s (CBB) monetary policy aligns with that of the Fed.
“Bahrain could face tighter financial conditions from trade-related inflationary pressures and disrupted global supply chains,”
the World Bank noted in its latest statement. Bahrain was among the first Middle Eastern countries to diversify its economy away from oil rents decades ago.
Author's summary: Central banks in Middle East prepare for 2026 inflation.