Kuwait Economic Data & Projections

Kuwait Economic Outlook

An oil-rich economy with limited diversification:

Kuwait’s economy is heavily dependent on oil, which accounts for around 90% of government revenue and 50% of GDP. The country holds some of the world’s largest oil reserves and has one of the highest GDP per capita figures in the Middle East. High global oil prices have provided fiscal stability, but Kuwait remains vulnerable to energy market fluctuations. Unlike some of its Gulf neighbors, Kuwait has been slow to diversify away from hydrocarbons.

Challenges in economic reform:

Efforts to reduce reliance on oil have been hindered by political gridlock, as tensions between the government and parliament have stalled major economic reforms and investment initiatives. That said, reform prospects improved after parliament was suspended in 2024 by the emir. While Kuwait’s sovereign wealth fund, the Kuwait Investment Authority, has significant assets to cushion against economic shocks, long-term fiscal sustainability will require reforms, including privatization and labor market modernization.

Public sector dominance and labor market imbalances:

Kuwait has one of the largest public sectors in the world, with a majority of citizens employed by the government. This has led to inefficiencies and put pressure on public finances. Expatriates make up most of the private-sector workforce, while Kuwaitis tend to prefer government jobs, creating imbalances in the labor market. Increasing private-sector participation and encouraging entrepreneurship remain key economic challenges.

Kuwait’s economic outlook:

Kuwait’s economy will continue to be shaped by oil price trends, with modest non-oil sector growth expect. While strong financial reserves provide stability, the recently slow pace of economic reform poses a risk to long-term growth. Diversification, infrastructure investment, and a more dynamic private sector will be essential to securing Kuwait’s economic future beyond hydrocarbons.

Kuwait's Macroeconomic Analysis:

Nominal GDP of USD 160 billion in 2024.

Nominal GDP of USD 165 billion in 2023.

Nominal GDP of USD 165 billion in 2023.

GDP per capita of USD 33,638 compared to the global average of USD 10,589.

GDP per capita of USD 33,638 compared to the global average of USD 10,589.

GDP per capita of USD 31,944 compared to the global average of USD 10,589.

Average real GDP growth of 0.3% over the last decade.

Average real GDP growth of 0.7% over the last decade.

Average real GDP growth of 0.7% over the last decade.

Sector Analysis

In 2020, services accounted for 43.6% of overall GDP, manufacturing 6.9%, other industrial activity 49.1%, and agriculture 0.4%. Looking at GDP by expenditure, private consumption accounted for 40.6% of GDP in 2019, government consumption 24.8%, fixed investment 24.6%, and net exports 10.0%.

International trade

In 2022, manufactured products made up 3.4% of total merchandise exports, mineral fuels 96.0%, food 0.4%, ores and metals 0.1% and agricultural raw materials 0.0%, with other categories accounting for 0.1% of the total. In the same period, manufactured products made up 74.6% of total merchandise imports, mineral fuels 0.5%, food 17.7%, ores and metals 2.7% and agricultural raw materials 0.6%, with other goods accounting for 3.9% of the total. Total exports were worth USD 84.10 billion in 2023, while total imports were USD 33 billion.