Kuwait set for first budget surplus since 2014 as oil drives resurgence

Kuwait set for first budget surplus since 2014 as oil drives resurgence

Kuwait - The latest Economic Insight report for the Middle East, commissioned by ICAEW and compiled by Oxford Economics, reveals a positive economic outlook for Kuwait boosted by rising oil prices and increasing oil. This has led to a much higher GDP growth forecast of 7% for 2022, compared with 2.5% in 2021. For the Middle East, the report reveals a positive regional outlook despite a darkening global landscape as market pressures mount and uncertainty heightens. Middle East GDP growth in 2022 is now projected at 5.2%, an increase of 1 percentage point on Oxford Economics’ forecast three months ago.

According to the report, the scrapping of all Covid-restrictions has supported a strong bounce back in economic activity following a modest retraction in Q1. This has seen the non-oil sector expand 4.7% this year, following growth of 3.1% in 2021, as consumer spending increases and the real estate market remains robust.

The oil sector, which accounts for over half of Kuwait’s GDP, is the main driver of its economic growth, with the sector expected to see year-on-year growth of 11.8%. This is a significant recovery following a 10% decline in 2020 and subdued growth of 0.1% in 2021. Kuwaiti oil output has