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Bahrain needs to follow Oman’s path to reduce debt fears

Oman and Bahrain both recorded sharp increases in their government debt-to-GDP ratios in the second half of the last decade, but while Oman’s public finances have improved dramatically since then, Bahrain’s have not. In Bahrain, significant tightening will be needed (as happened in Oman) to stabilise public debt or it may have to turn back to the larger Gulf states for financial support.

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