Kuwait-Mubasher: The non-oil economic growth of Kuwait is expected to increase to 4-5% in 2016 and 2017, despite the large decline in oil prices seen since the middle of 2014, NBK said in a report issued recently.
NBK noted that Kuwait’s fiscal deficit should not exceed 6.2% of gross domestic product (GDP) in FY15/16, and is seen narrowing to under 4% in the following two years.
Sovereign wealth fund is estimated at over $550 billion, 400% of GDP.
“Our baseline view is that Brent will gradually improve towards an average of $55 a barrel in 2016 and perhaps $60 in 2017,” added the report.
NBK said that the most recent available official data on non-oil GDP growth showed slower growth of 2.1% in 2014. It added “we think this will be revised upwards towards 3-3.5%.”
“The somewhat robust outlook for the non-oil sector is being driven in large part by the outlook for government capital spending. Plans involve spending around KWD 34 billion between 2015 and 2020,” according to NBK.
