A report issued by the Institute of Chartered Accountants in England and Wales (ICAEW) showed that high oil prices and production enhanced the economic outlook for Kuwait and that the gross domestic product is likely to grow by 7 percent in 2022, compared to 2.5 percent in 2021.
According to the institute, the abolition of restrictions related to the Coronavirus in Kuwait paved the way for a strong recovery in economic activity after a modest decline in the first quarter. The non-oil sector is expected to grow by 4.7 percent this year, on the back of rising consumer spending and strong real estate sales, after a 3.1 percent growth last year. He noted that the oil sector, which accounts for more than half of the GDP, is a major driving force for the economy this year, with an expected growth of 11.8 percent on an annual basis, the institute indicated that Kuwaiti oil production rose to more than 2.6 million barrels per day with the easing of OPEC Plus production restrictions, while the oil sector had recorded a slight growth of 0.1 percent in 2021, after declining by about 10 percent in 2020.
The report noted that the improvement in the future outlook for oil production and prices would enhance Kuwait's financial position, suggesting that the government would record its first budget surplus since 2014 this year, at 6.2 percent of GDP.
Source (Al-Rai Kuwaiti Newspaper, Edited)
