Kuwait’s crisis pushes government to cut spending, expand debt

SourceArab Weekly
SectorEconomy
CountryKuwait

KUWAIT – Kuwait’s suffocating economic crisis has forced the government to limit spending as it faces a decline in oil revenues and the repercussions of the COVID-19 crisis, amid a wave of social unrest triggered by reduction of public subsidies and jobs. Recent data and indicators reveal that Kuwait’s economic burden is growing. The government has tried to limit its losses by taking steps to bridge the financial gap, but experts believe its austerity measures are not proving effective. The government’s recent step increased fears within economic and popular circles about liquidity and the potential loss of financial balances, reinforcing the need for new external debt, which parliament has rejected MP Adnan Abdulsamad, chairman of the budgets and final accounts committee, said on Tuesday that Kuwait has cut 945 million dinars ($3.1 billion) ...read more...