Overview: The oil sector dominates the economy. Of the countries in the Middle East, Kuwait has oil reserves second only to those of Saudi Arabia. Earnings from hydrocarbons generate over 90% of both export and government revenues and contribute about 40% to GDP. Most of the nonoil sector is dependent upon oil-derived government revenues to provide infrastructure development and to promote limited industrial diversification. The economy is heavily dependent upon foreign labor--Kuwaitis account for less than 20% of the labor force. The early years of the Iran-Iraq war pushed Kuwait's GDP well below its 1980 peak; however, during the period 1986-88, GDP increased each year, rising to 4% in 1988.

GDP: $19.1 billion, per capita $10,410; real growth rate 4% (1988)

Inflation rate (consumer prices): 0.8% (1988)

Unemployment rate: 0%

Budget: revenues $7.1 billion; expenditures $10.5 billion, including capital expenditures of $3.1 billion (FY88)

Exports: $8.7 billion (f.o.b., 1988); @m5commodities--oil 90%; @m5partners--Japan, Italy, FRG, US

Imports: $4.9 billion (f.o.b., 1988); @m5commodities--food, construction material, vehicles and parts, clothing; @m5partners--Japan, US, FRG, UK

External debt: $10.4 billion (December 1988)

Industrial production: growth rate 3% (1988)

Electricity: 7,687,000 kW capacity; 19,539 million kWh produced, 10,080 kWh per capita (1988)

Industries: petroleum, petrochemicals, desalination, food processing, salt, construction

Agriculture: virtually none; dependent on imports for food; about 75% of potable water must be distilled or imported

Aid: NA

Currency: Kuwaiti dinar (plural--dinars); 1 Kuwaiti dinar (KD) = 1,000 fils

Exchange rates: Kuwaiti dinars (KD) per US$1--0.2845 (January 1989), 0.2790 (1988), 0.2786 (1987), 0.2919 (1986), 0.3007 (1985)

Fiscal year: 1 July-30 June

NOTE: The information regarding Kuwait on this page is re-published from the 1989 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Kuwait Economy 1989 information contained here. All suggestions for corrections of any errors about Kuwait Economy 1989 should be addressed to the CIA.