Mubasher: The Arab Monetary Fund (AMF) expects the inflation rate in Kuwait to rise to 3.5% during 2017, with estimates to reach 3.9% in 2018.
The forecast of a higher inflation is attributed to the government’s goal to reduce subsidies, the expected increase in oil prices, and the implementation of the value-added tax (VAT) by 2018.
The AMF expected Kuwait’s trade balance surplus to increase to $27 billion in 2017, accounting for 21.6% of the gross domestic product (GDP).
Meanwhile, the deficit in services and income balance is projected to increase to $1.6 billion in 2017, the AMF’s report added.
The higher trade surplus is likely to result from an increase in exports to $56.5 billion.
In 2018, the AMF expected the country’s trade surplus to grow to $30 billion.
