• Nene's SAA nemesis

    No political figure seems to have the guts to speak out against Dudu Myeni, says Solly Moeng.

  • The mp3 revolution

    Ian Mann takes a look at the war between digital music and the compact disc.

  • Don't take us for fools

    It's time for businesses to stop thinking consumers are gullible, says Mandi Smallhorne.

All data is delayed
See More

Kuwait growth to slow - report

Feb 03 2013 12:20
Kuwait City - Oil-driven economic growth in the Gulf state of Kuwait is forecast to slow down this year and in 2014 as crude output is expected to remain flat, the National Bank of Kuwait said in a report Sunday.

After Gross Domestic Product (GDP) grew by a healthy 6.1% in real terms last year, thanks to continued strong oil income, it is forecast to drop to 3.2% in 2013 and to 2.5% in 2014, NBK said.

Following a massive contraction of around 8% in 2009 due to the impact of the global financial crisis, Kuwait's economy gradually rebounded to grow by around 8% in 2011 as oil output and price remained high.

Oil income in the OPEC member contributes an average of 95% to public revenues. Kuwait ended the past 13 fiscal years in the black and is forecast to post a huge budget surplus in the current fiscal year which ends on March 31.

Oil GDP, which grew by 15% and 10% in 2011 and 2012 respectively, is expected to remain flat this year and contract by around 1.5% in 2014, according to the NBK report.

But the bank revised upward expected non-oil GDP growth from 4% to 5% this year based on signs of greater determination by the authorities to implement large infrastructure projects.

Most projects under a $110bn four-year development plan, that runs until 2014, have been stalled because of a political crisis in the emirate.

The opposition has staged protests to demand the dissolution of parliament elected last month on the basis of an electoral law that was amended by the emir, claiming that the change is illegal and aimed at electing a rubber stamp body.

But over the past few months, authorities either signed or gave the green light for mega projects worth around $40bn, mostly in the oil and power sectors.

Inflation this year and next is expected to remain moderate at between 3-4%.

Kuwait says it sits on around 10% of global oil reserves and pumps around 3.0 million barrels per day. It is estimated to have $400bn in foreign assets run by the sovereign wealth fund.

The emirate has a native population of 1.2 million in addition to 2.6 million foreigners, mostly Asians and Arabs.
kuwait  |  economy



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The 25 basis points interest rate increase is:

Previous results · Suggest a vote