The World Bank expected the growth of the Kuwaiti economy to accelerate in 2022 to reach 8.5 percent before declining to 2.5 percent on average in 2023 and 2024, according to the latest version of its report on the latest economic developments in the Gulf region.
The report expected the non-oil sector to continue to expand in 2023 after it recorded an increase of 7.7 percent in 2022. Noting that the rise in the strength of demand will lead to additional upward inflationary pressures, although the tightening of monetary policies and the decline in global food prices will lead to lower inflation in the medium range.
The World Bank expected that the public finance balance in Kuwait would register a surplus of 1.1 percent of the gross domestic product in 2022. With the possibility of an increase in the surplus (5.9 percent of GDP), if the newly elected National Assembly approves the government's proposal to stop the transfer allocated to the Fund for Future Generations during the current fiscal year.
The report expected that the rise in oil revenues would compensate for the large import bill in stages and that this would lead to a large surplus in the country's external balance by 28.6 percent of the GDP in the current 2022.
Source (Al-Rai Kuwaiti Newspaper, Edited)
