Overview: Up to the invasion by Iraq in August 1990, the oil sector had dominated the economy. Kuwait has the third-largest oil reserves in the world after Saudi Arabia and Iraq. Earnings from hydrocarbons generated over 90% of both export and government revenues and contributed about 40% to GDP. Most of the nonoil sector has traditionally been dependent upon oil-derived government revenues. Iraq's destruction of Kuwait's oil industry during the Gulf war has devastated the economy. Iraq destroyed or damaged more than 80% of Kuwait's 950 operating oil wells, as well as sabotaging key surface facilities. Western firefighters had brought about 140 of the 600 oil well fires and blowouts under control as of early June 1991. It could take two to three years to restore Kuwait's oil production to its prewar level of about 2.0 million barrels per day.

GDP: $19.8 billion, per capita $9,700; real growth rate 3.5% (1989)

Inflation rate (consumer prices): 3.3% (1989)

Unemployment rate: 0% (1989)

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

Exports: $11.5 billion (f.o.b., 1989); commodities--oil 90%; partners--Japan, Italy, FRG, US

Imports: $6.3 billion (f.o.b., 1989); commodities--food, construction materials, vehicles and parts, clothing; partners--Japan, US, FRG, UK

External debt: $7.2 billion (December 1989 est.)

Industrial production: growth rate 3% (1988); accounts for 52% of GDP

Electricity: 8,290,000 kW capacity; 10,000 million kWh produced, 5,000 kWh per capita (1989)

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

Economic aid: donor--pledged $18.3 billion in bilateral aid to less developed countries (1979-89)

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

Exchange rates: Kuwaiti dinars (KD) per US$1--0.2915 (January 1990), 0.2937 (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 1991 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Kuwait Economy 1991 information contained here. All suggestions for corrections of any errors about Kuwait Economy 1991 should be addressed to the CIA.