Markaz: Kuwait’s non-oil sector is expected to grow by 4.4% in 2023

Markaz: Kuwait’s non-oil sector is expected to grow by 4.4% in 2023

Kuwait Financial Centre “Markaz” recently released its Monthly Market Review report for the month of May 2023. Kuwait’s All Share Index declined in May, posting a monthly loss of 4.8%. Among Boursa Kuwait’s sectoral indices, Telecom and Banking sector lost 6.7% and 6.0% respectively for the month.

Among Premier Market stocks, Mezzan Holding and Ali Alghanim Sons saw the biggest gains for the month, up by 12.4% and 7.7% respectively, on account of stronger earnings growth in Q1 2023. National Investments Co. fell the most for the month, down by 23.4%. Kuwait consumer price inflation (CPI) rose by 3.7% y-o-y in April, the same pace as in the previous month and 0.2% m-o-m primarily driven by food and clothing prices.

Food inflation climbed to a nine-month high of 7.7% y-o-y. The World Bank expects Kuwait’s economic growth to slow to 1.3% in 2023, down from 7.3% in 2022. The decline in oil and gas revenues and the slowdown in global economic activity are the main reasons for the fall in Kuwait’s growth forecast. Kuwait’s non-oil sector is expected to grow by 4.4% in 2023. On the positive side for the economy, the World Bank also expects Kuwait’s inflation to decrease to 2.6%