Kuwait economy: Resilient and buoyant

Kuwait economy: Resilient and buoyant

By Sajeev K Peter

Kuwait’s economy has remained resilient in the face of a global slowdown following two years of the COVID-19 pandemic. Riding a wave of strong growth, it bounced back to pre-pandemic levels immediately after the country eased coronavirus-related restrictions on May 1, 2022. The government’s swift and decisive responses to the COVID-19 crisis and strong vaccination efforts have helped the economy recover sharply from the pandemic-induced slowdown.

This acceleration in growth momentum is in tandem with Kuwait’s 2035 vision that aims at transforming Kuwait into a financial and trade hub regionally and internationally, making it more attractive to investors. The development plan, formulated under the guidance and patronage of His Highness the Amir Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah and His Highness the Crown Prince Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah, also envisages a more crucial role for Kuwait’s private sector in driving growth, creating competition and promoting production efficiency.

According to the International Monetary Fund, Kuwait’s overall real GDP growth is estimated to have rebounded from -8.9 percent in 2020 to 1.3 percent in 2021. It was projected to further climb to above 8 percent in 2022, supported by rising oil production, high oil prices and sustained improvement in domestic demand.