Kuwaiti economy outlook subject to uncertainty and risks

Kuwaiti economy outlook subject to uncertainty and risks

The International Monetary Fund stated that the outlook for the Kuwaiti economy is subject to uncertainty and risks surrounding the external environment including the potential effects of monetary policy tightening in major advanced economies and further global slowdown, reports Al-Rai daily. The IMF expert mission, on the occasion of the end of its visit to the country, explained that fluctuations in oil prices and the quantities of its production, as a result of external factors including the geopolitical environment, would affect economic activity. The delay in major financial and structural reforms may lead to an increase in the risks of pro-cyclical financial policies, impeding progress towards greater economic diversification and increased competitiveness.

It stated that it expects the output growth to rise to more than eight percent this year, but in 2023 it was likely that growth would decline, reflecting the slowdown in external demand for oil and the reductions in its production under the OPEC+ agreement.

The IMF stressed that the government has so far been able to contain the direct negative repercussions of the Russian war in Ukraine, and contain inflation by taking advantage of monetary tightening and limited passage of increases in global food and energy prices, thanks to