(MENAFN) A recent report released by ratings agency Standard & Poor's showed that most sectors of Bahrain's economy are growing moderately as the country slowly recovers from last year's unrest, Arabian Business reported.
However, S&P warned that the possibility for unrest remains strong, as authorities struggle to defuse tensions.
The ratings agency affirmed 'BBB' to Bahrain's long-term foreign and local currency sovereign credit, with a negative outlook, as the Gulf Kingdom's economic growth was lower than historical levels.
In a separate report, S&P noted that the outflow from Bahrain's financial sector is decreasing, adding that it expected growth to rise to 3.2 percent this year.
The report indicated that the unrest has deeply hurt Bahrain's fiscal position, with the budget-balancing oil price rising to USD120 per barrel.
S&P estimated general government debt to stand at 42 percent of GDP in 2012, up from 24 percent in 2009, reducing the government's net asset position to 6.9 percent of GDP in 2012 from 25 percent in 2009.