Mubasher: Kuwait’s non-oil industry is expected to see a 3% growth in 2019, compared to 2.8% in the last year, the National Bank of Kuwait (NBK) said in a report.
The GCC country’s economic performance has improved over the previous two years, the report said.
The bank forecast the number of Kuwait’s projects to rise this year, while the nation’s gross domestic product (GDP) is projected to drop to 2.2% due to the oil sector’s soft growth.
“The recovery in consumer spending that helped growth through 2017 may have peaked, though with inflation still low and employment growth steady, prospects remain reasonable,” the report found.
“On the medium-term, growth will remain constrained by the pace of reforms, a lack of economic diversification and a potential slowdown in global growth,” it added.
Higher inflation
The NBK’s report further indicated that inflation’s rate will rise to 2% this year, compared to 0.6% a year earlier.
On a separate note, the Kuwaiti lender forecast that the value-added tax (VAT) will not be imposed before 2021.
Larger budget
The GCC nation’s budget is also expected to level up 27% in the FY2018/2019, based on the Kuwaiti crude oil price which is $68 per barrel (pb), while non-oil revenues are also forecast to see a major increase.
