Kuwait faces potential GDP contraction for second year

Kuwait faces potential GDP contraction for second year

KUWAIT CITY, May 30: A recent report has indicated that Kuwait may experience a GDP contraction for the second consecutive year due to the weak oil market and production cuts, reports Al-Qabas daily. Kuwait ranked fifth in the MEED Index of Economic Activity, which evaluates the short-term economic health of regional markets. The report highlighted …KUWAIT CITY, May 30: A recent report has indicated that Kuwait may experience a GDP contraction for the second consecutive year due to the weak oil market and production cuts, reports Al-Qabas daily. Kuwait ranked fifth in the MEED Index of Economic Activity, which evaluates the short-term economic health of regional markets. The report highlighted Kuwait’s heavy dependence on oil, with 95 percent of its exports and 90 percent of government revenues originating from the oil sector, making its real GDP highly susceptible to oil price fluctuations.

Despite this, Kuwait still maintains a fiscal surplus. The report also noted the underperformance of Kuwait’s project market, with contracts awarded 40 percent below the long-term average and 25 percent below the completion rate. Meanwhile, the UAE has regained the top position in the MEED Index, surpassing Saudi Arabia. Both countries started 2024 with optimistic growth forecasts of