Mubasher: The Kuwaiti current account is expected to see a surplus of 12.7% of the country’s gross domestic product (GDP) in 2018.
Inflation went down to 0.7% last year, its lowest level in years, on the back of a decline in rents and food prices, along with a strong dinar, according to a report released by the International Monetary Fund (IMF) on Wednesday.
“Higher oil revenues and investment income boosted the overall balance. However, the underlying fiscal position—non-oil balance less investment income in % of oil GDP—indicates a modest loosening in fiscal years 2017/2018 and 2018/2019,” the report found.
The IMF remarked: “The increased uncertainty about oil price prospects though underscores the need to reduce dependence on oil and increase savings for the future.”
The Kuwaiti government has resorted to the General Reserve Fund assets to finance its activities due to the delays in the passage of a new debt law, the international organisation added.
