Mubasher: The International Monetary Fund (IMF) projected Kuwait’s non-oil growth to increase by 3.5% in 2020, from 2.5% in 2018, on the back of higher oil prices, which raised capital spending.
During an official staff visit to the GCC member, the IMF mission assumed an average oil price of $57 per barrel (pb) in fiscal year 2019/2020, increasing to $60 pb over the medium term, the Washington-based lender said in a statement.
Kuwait’s inflation rate will likely surge by 2.5% in FY 19/20 from 0.7% in 2018, triggered by the retreat in the deflationary factors last year.
Increased oil prices will help in realising a balance of payments surplus of 13.2% of gross domestic product (GDP) in 2018, from 6% in the prior year, the IMF added.
Higher oil revenues and investment income contributed to raising FY 17/18 budget surplus to 8% of GDP and it is expected to reach 12% of GDP in fiscal year 2018/2019, according to the statement.
Delaying a new debt law made the Kuwaiti government unable to issue debt since October 2017, compelling the Arab country to resort to the state General Reserve Fund for financing, including the repayment of maturing debt, the international fund noted.
