Mubasher: The ratings agency S&P announced that the economy of Kuwait is expected to grow in 2018 following 12difficult past months, as reported by Arabian Business.
S&P has reaffirmed Kuwait’s rating of “AA/A-1+” and stated that the country is “Stable”.
The year 2017 was challenging for Kuwait, as for many other Gulf countries.
“S&P’s report outlined how Kuwait’s economy remains “undiversified” because it derives about 60% of its GDP, more than 90% of exports, and about 90% of fiscal receipts from hydrocarbon products,” Arabian Business said.
As a result, its gross domestic product (GDP) declined by 2.3% during 2017 as oil prices remained underweight.
S&P predicts a 2.5% growth in 2018 as energy prices increase and oil production starts to climb moving into 2019, Arabian Business noted.
Arabian Business quoted S&P’s report, saying “The stable outlook reflects our expectation that Kuwait’s public and external balance sheets will remain strong over the forecast horizon, backed by a significant stock of financial assets. We expect these strengths to offset risks related to lower oil prices, Kuwait’s undiversified economy, and rising geopolitical tensions in the region.”
