At the outset, the Kuwait economy growth outlook remains positive, with GDP expected to grow by 3.3 percent over the next year. This projection reflects strong reform progress, higher oil output, and stable consumer demand.
Moreover, although global trade tensions and weaker demand raise risks, oil prices near $70 per barrel continue to support Kuwait’s economic outlook. As a result, public revenues remain solid, and government spending stays on track.
Kuwait plans to increase oil production as OPEC+ relaxes supply limits. Therefore, the oil sector should grow by 2.4 percent annually. Meanwhile, non-oil industries are expanding steadily, which strengthens the Kuwait economy growth outlook.
Furthermore, corporate lending is rising, and project awards reached a seven-year high. These trends reflect business confidence and wider economic recovery.
Accordingly, the Vision 2035 pipeline, including housing, energy, and transport, will likely fuel the national recovery. Faster execution could boost the overall national economic outlook.
In addition, the government introduced several key reforms. It removed service fee caps and applied a new tax on multinational profits. These measures help stabilize revenue and reinforce the Kuwait economy growth outlook.
Parliament passed a long-delayed public debt law. Likewise, lawmakers nearly finalized a housing finance law to solve housing shortages. These actions enhance Kuwait’s fiscal tools and support long-term planning.
Notably, inflation eased to 2.5 percent, mainly due to slower food and clothing price increases. As a result, consumer confidence remains stable.
The Central Bank holds interest rates at 4.0 percent. However, analysts expect gradual cuts, which could further support the Kuwait economy growth outlook.
Importantly, the Government forecasts show fiscal deficits averaging 7.1 percent of GDP. Nonetheless, leaders aim to shift spending toward capital investment and reduce inefficient subsidies.
To strengthen revenue, officials will expand service fees, enforce penalties, and consider VAT and excise taxes. These steps follow IMF recommendations and aim to protect Kuwait’s growth forecast.
Over the next two years, Kuwait will issue debt locally and abroad. Even then, debt levels will stay very low. Consequently, the national economic outlook remains credible and sustainable.
To sum up, despite potential oil price drops and regional risks, reform efforts and investment progress continue to improve the Kuwait economy growth outlook. Leaders remain confident in the country’s economic path.
