S&P holds Kuwait at ‘AA … stable’ – ‘Muted growth’ – ARAB TIMES – KUWAIT NEWS – Arab Times Kuwait English Daily

S&P holds Kuwait at ‘AA … stable’ – ‘Muted growth’ – ARAB TIMES – KUWAIT NEWS – Arab Times Kuwait English Daily

It said Kuwait's economy remained dependent on oil which accounts for 90 percent of exports, expecting muted economic growth given a recent OPEC+ decision to extend the oil cut production agreement until 2020, in addition to ongoing regional geopolitical tensions.. S&P said Kuwait has substantial savings of over 400 percent of Gross Domestic Product (GDP) accumulated within the sovereign wealth fund.. Kuwaiti government surpluses were set to continue even with lower oil prices ahead, bolstered by investment returns on the sovereign wealth fund assets, the global rating agency said.. Kuwait derives about 50 percent of GDP, more than 90 percent of exports, and about 90 percent of fiscal receipts from hydrocarbon products.. The December 2019 OPEC+ decision to further cut oil production constrains short-term growth while the recent escalation of US-Iran tensions poses risks.. We project the overall economy will expand by a modest 0.5 percent this year, similar to 2019.. The government will continue to rely on asset drawdowns from the GRF to finance deficits at the central government level. ".