Growth has strengthened, and fiscal and external positions improved thanks to higher oil prices. The increased uncertainty about oil price prospects though underscores the need to reduce dependence on oil and increase savings for the future. The key priority is to build national consensus around equitable and well-sequenced reforms to underpin fiscal consolidation and promote the private sector. To gain broad support, reforms should improve the quality of public services, strengthen governance, and be supported by a vigorous communications campaign. Ample financial assets and low debt allow Kuwait to undertake the needed reforms from a position of strength.
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