We have revised up our forecasts for new vehicle sales in Bahrain in 2013 from a 9% year-on-year (y-o-y) rise expected earlier to a more robust 14.5% y-o-y growth. The upgrade reflects our overall optimism for the economy during 2013 and 2014, when we expect real GDP growth of 4.3% and 3.4% respectively. We believe that planned expansion in government current spending will help stimulate private consumption, which in turn will support new vehicle sales. The first half of 2013 has seen a solid revival in economic activity, primarily driven by a normalisation of oil output following a prolonged technical …
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