The Kuwaiti Central Administration for Statistics revealed a contraction of the gross domestic product at constant prices during the third quarter of 2020 by 11.4 percent on an annual basis, amid the economic repercussions of the Corona pandemic and the drop in oil prices.
According to the data, the Kuwaiti economy recorded a growth of 1.2 percent during the third quarter to 8.6 billion dinars (28 billion dollars), compared to the second quarter of 2020. The oil sector declined by 14.8 percent in the third quarter on an annual basis, and the non-oil sector decreased by 7.6 percent at current prices. The Kuwaiti gross domestic product shrank by 20.3 percent in the third quarter on an annual basis, amounting to 7.9 billion dinars ($26 billion).
The data attributed the GDP growth on a quarterly basis, to the recovery of global oil prices and the improvement in economic activities compared to the second quarter of last year. It also showed that the contribution of the oil sector to the GDP at constant prices amounted to 52.2 percent, with a value equivalent to 4.4 billion dinars (14.5 billion dollars).
Kuwait is experiencing one of its worst economic crises, due to the effects of the Coronavirus and low oil prices, the main source of more than 90 percent of government revenues, which may force it to resort to liquidating some sovereign assets to fill the budget deficit.
Source (Gulf Online, Edited)
