Kuwait Economic Forecast

Kuwait Economic Outlook

June 7, 2022

The energy sector has performed well so far this year, with oil output up around 14% in the first four months thanks to reduced OPEC+ curbs. In the non-oil sector, momentum was likely curbed in early 2022 by a surge in Covid-19 cases and some ensuing restrictions. However, since mid-February cases have fallen and these restrictions have been eased, supporting domestic consumption and visitor arrivals. In addition, both business and consumer lending improved during the first quarter, with the latter growing at a double-digit annual rate, while a multi-year high in the price of oil may be boosting government spending. However, the country has been in political limbo since the executive branch of government resigned in early April. This is delaying important reforms—including the approval of a new debt law that will allow the country to tap international bond markets.

Kuwait Economic Growth

GDP growth should pick up this year due to higher oil output and prices and increased domestic demand due to the ebbing impact of Covid-19. Slow progress on reforms in such areas as economic diversification, fiscal management, labor markets and housing due to political gridlock is a downside risk. FocusEconomics analysts forecast GDP growth of 7.0% in 2022, which is up 0.2 percentage points from last month’s projection. In 2023, our panel expects growth of 3.4%.

Kuwait Economy Data

2015 2016 2017 2018 2019
Population (million)4.24.34.54.64.7
GDP per capita (USD)27,26125,30127,09930,67328,639
GDP (USD bn)114110121140135
Economic Growth (GDP, annual variation in %)0.62.9-4.71.20.4
Consumption (annual variation in %)1.51.03.05.7-  
Investment (annual variation in %)-  -  -  -  -  
Unemployment Rate2.22.21.82.12.2
Fiscal Balance (% of GDP)-13.4-13.9-8.9-3.0-  
Inflation Rate (CPI, annual variation in %)3.73.51.50.61.1
Policy Interest Rate (%)2.252.502.753.002.75
Exchange Rate (vs USD)0.300.310.300.300.30
Exchange Rate (vs USD, aop)0.300.300.300.300.30
Current Account (% of GDP)3.5-4.68.014.5-  
Current Account Balance (USD bn)4.0-5.19.620.3-  
Trade Balance (USD billion)27.819.525.740.8-  
Exports (USD billion)54.246.655.272.1-  
Imports (USD billion)26.427.029.531.3-  
Exports (annual variation in %)-48.7-14.118.530.7-  
Imports (annual variation in %)-3.12.39.16.0-  
International Reserves (USD)28.431.133.737.139.9
External Debt (% of GDP)35.738.545.6-  -  

Sample Report

5 years of Kuwait economic forecasts for more than 30 economic indicators.

Download

Sample Report

Get a sample report showing our regional, country and commodities data and analysis.

Download

Kuwait Facts

Value Change Date
Exchange Rate0.30-0.05 %Dec 31

Request a Trial

Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.

Sign Up

Search form