The Institute of International Finance expected that the Kuwaiti government and the National Assembly would approve a supplementary budget while reducing spending for the fiscal year 2020/2021, and passing a new debt law that would allow the government to borrow.
In a report that highlighted the economic situation in the Gulf region, the institute revealed that Kuwait, Saudi Arabia, Qatar, and the Emirates that have large foreign government assets are better equipped than Bahrain and Oman to absorb the large deficits.
While the Institute suggested that the total foreign assets in the region reach great levels by about $ 2.6 trillion, he indicated that Gulf sovereign wealth funds continue to buy assets in America, Europe, and China with a focus on health care, logistics and technology.
According to the institute’s data, Kuwait is expected to achieve a contraction of 5.1 percent in real GDP, while achieving a rate of 1.6 percent at the level of inflation, while it is likely to record a current account deficit of 8.5 percent of GDP, with Public debt increased by 18.5 percent. In contrast, the data showed that the size of Kuwait's general foreign assets is 577 billion dollars.
Source (Kuwaiti newspaper Al-Rai, Edited)
