Kuwait: 2023 Article IV Consultation-Press Release; and Staff Report

Author: International Monetary Fund. Middle East and Central Asia Dept.

Volume/Issue: Volume 2023 Issue 331

Publication date: September 2023

ISBN: 9798400254680

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Topics covered in this book

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Economics- Macroeconomics , Money and Monetary Policy , Public Finance , Business and Economics - Statistics , International - Economics , Industries - Energy , staff appraisal , higher-than-estimated capital expenditure , oil GDP growth , Fund standard , IMF staff calculation , Oil prices , Fiscal stance , Global

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Summary

Benefiting from high oil prices, Kuwait’s economic recovery continues, and the fiscal and external balances have strengthened. Inflation is contained and external buffers are increasing. However, structural challenges persist. The dominance of oil in Kuwait’s economy coupled with global decarbonization trends underscore the urgency for economic diversification and structural transformation, and the pursuit of fiscal reforms to reinforce sustainability.