Kuwait’s economic recovery continues, fiscal and external balances improving

Kuwait’s economic recovery continues, fiscal and external balances improving

KUWAIT: The Central Bank of Kuwait (CBK) has published a statement on Thursday released by the International Monetary Fund (IMF) on the occasion of the conclusion of its mission’s visit to Kuwait. The mission held discussions with the Kuwaiti authorities and the CBK officials during December 11-18, 2022. At the conclusion of the mission, the head of the IMF mission Yasser Abdih issued the following statement:

“Kuwait’s economic recovery continues. Strong vaccination efforts and the authorities’ swift and decisive responses to the COVID-19 crisis have allowed for the relaxation of all social distancing restrictions and supported economic recovery. Overall real GDP growth is estimated to have rebounded from -8.9 percent in 2020 to 1.3 percent in 2021. It is projected to further increase to above 8 percent in 2022, supported by increased oil production, high oil prices, and sustained improvement in domestic demand.

In 2023, growth is likely to moderate, reflecting slowing external demand and oil production cuts under the OPEC+ agreement. Direct adverse spillovers from the Russia’s war in Ukraine have been contained so far given the limited trade and financial linkages with both countries.

“Inflation has been contained, benefiting from monetary tightening and limited passthrough from higher global food and energy