A report by the National Bank of Kuwait (NBK) revealed that gross growth rose to 2.5 percent, supported by 1.5 percent growth in the oil sector's GDP this year, and 3.5 percent in the non-oil sector.
According to the report, the budget deficit fell to 3.2 billion dinars (8.9 percent of GDP) in the fiscal year 2017-2018, from 4.6 billion dinars (13.8 percent of GDP) in the previous fiscal year.
The government revenues were higher than those specified in the budget, amounting to 16 billion dinars as a result of the rise in oil prices and fees and the improved efforts and mechanisms of the collection. Oil revenues also rose by 22 percent, in line with a similar increase in the price of Kuwaiti export crude. Non-oil income increased 21 percent year-on-year as a result of the increase of the health insurance premiums.
Expenditures amounted to 19.2 billion dinars, up 8.7 percent year-on-year due to strong increases in capital spending and high spending on goods and services as a result of higher oil prices. The report predicted that the deficit will shrink this year, despite expectations for the arrival of "Brent" $ 65 a barrel.
