Kuwait Economic Growth (GDP, ann. var. %)

Economic Growth in Kuwait

After likely registering one of the fastest economic expansions in the region last year, the economy is seemingly slowing sharply so far in 2023. In January–April, oil output rose just 1.9% in annual terms, compared to 12% on average in 2022; deeper OPEC+ cuts will further weigh on the energy sector from May onwards. The non-energy sector is seemingly losing steam too, amid higher interest rates and the normalization of activity post pandemic. Real estate sales fell to a near three-year low in April, while business and consumer credit readings have trended down so far this year. That said, double-digit growth in the value of card transactions in Q1 points to still-solid consumer spending. In politics, political tensions between Parliament and the executive will likely persist in the aftermath of the 6 June parliamentary elections, hampering reform progress.