IMF projects Kuwait's GDP growth at above 8% for 2022
The growth is due to increased oil production, high oil prices, and sustained improvement in domestic demand.
The International Monetary Fund (IMF) projected Kuwait's real gross domestic product (GDP) growth to be above 8% in 2022 before moderating in 2023.
Kuwait's GDP growth rate was at 1.3% in 2021 and -8.9% in 2020. Increased oil production as well as high oil prices and domestic demand have had a positive effect on the GDP, according to a report in Zawya.
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Kuwait also seems to be protected from the effects of the Russia-Ukraine crisis.
The Middle East's oil producers have benefitted from the higher oil prices since the war began. The IMF earlier predicted that these countries would reap a windfall of up to $1.3 trillion over the next four years.
Kuwait produces about 2.6 million barrels of crude per day. And, the higher oil prices as well as output have led to higher overall fiscal and current account surpluses this year.
The report added that the Kuwaiti banking system continues "to be well-capitalised and liquid, financial soundness indicators are healthy, and private sector credit growth remains strong".
However, the bank also warned the outlook is subject to uncertainties and risks surrounding the external environment, including the impact of monetary policy tightening in major advanced economies, slowdown in global economic activity, and delays in key fiscal and structural reforms.
Edited by Affirunisa Kankudti