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, yet consensus on tackling it remains elusive.
The smallest economy in the Gulf Cooperation Council (GCC), Bahrain, is expected to remain stable, with GDP growth at 3.5% and inflation below 1% this year. The Central Bank of Bahrain's (CBB) monetary policy aligns with the Fed, but
“Bahrain could face tighter financial conditions from trade-related inflationary pressures and disrupted global supply chains,”according to the World Bank.
- GDP growth: 3.5%
- Inflation: below 1%
- Dirham pegged to the dollar
Bahrain was among the first Middle Eastern countries to diversify its economy away from oil rents decades ago.
Author's summary: Central banks in the Middle East prepare for 2026 inflation.