Bahraini economy is expected to recover, and that it will grow this year, Kuwait Finance House (KFH)-Research said in a report Wednesday. The report forecast Bahrain's real GDP growth at 3.5 percent y-o-y in 2012 compared with 2.2 percent y-o-y in 2011 as economic policies in the coming years will be focused on restoring confidence in Bahrain's economy. Bahrain will also try to diversify the economy from oil, stimulate private-sector growth and foreign investment and address unemployment among nationals. The Bahraini economy has been supported by economic policies that focus on regaining trust, diversifying sources of income, and stimulating foreign investments. The report expected the GDP to grow by 3.5 percent by the end of this year, after its unprecedented growth in 2011. In addition, the report stated that the Bahraini economy began to recover after the political unrest in Bahrain. It noted that the economy witnesses a boost since Q4 of 2011, as a result of the strong performance of most sectors. Bahrain's real gross domestic product (GDP) grew by 3.2 percent y-o-y in 4Q11 from an upwardly revised 2.9 percent y-o-y in 3Q11 (previous estimation: 2.4 percent y-o-y) mainly driven by a strong recovery in the hydrocarbon, manufacturing and financial services sectors, according to Central Informatics Organization (CIO) of Bahrain. On a quarter-on-quarter basis, real GDP expanded by 1.3 percent in 4Q11 compared with 2.2 percent y-o-y in 3Q11. This brings the annual real GDP for 2011 as a whole to reach 2.2 percent y-o-y, higher than our previous estimate of 1.8 percent y-o-y. Crude petroleum and natural gas sector (which contributes 12 percent of total GDP) rose by 7.6 percent y-o-y during the quarter as compared with 3.5 percent y-o
