Kuwait’s GDP growth to be the slowest in GCC in 2023

Kuwait’s GDP growth to be the slowest in GCC in 2023

Kuwait, which was likely the second strongest growing economies within the GCC last year, is set to register the slowest pace of growth amongst its peers in 2023, according to a new report by Emirates NBD.

"We project an expansion rate of 2.4% this year, compared with an estimated 8.0% last year, which would come in slower than our forecast weighted average growth rate of 3.2% for the GCC," Daniel Richards, MENA economist at the Dubai-based bank, said in the report.

Last month, the IMF projected real GDP growth for Kuwait to moderate in 2023 reflecting slowing external demand and oil production cuts under the OPEC+ agreement. Since the war began, the Middle East's oil producers have benefitted from the higher oil prices, with IMF itself estimating earlier this year that they would reap a windfall of up to $1.3 trillion over the next four years.

The oil exporter, which according to Bloomberg estimates cited by Emirates NBD, produced on average 2.69 million barrels per day (mbd) in 2022; representing an 11.6% increase on the 2.41 mbd produced in 2021.

The lender said in its report said that in 2023 Kuwait’s output will expand more modestly and they have penciled in oil & gas