Kuwait Economy - 2022

GEOGRAPHICAL NAMES 

Economic overview

Kuwait has a geographically small, but wealthy, relatively open economy with crude oil reserves of about 102 billion barrels - more than 6% of world reserves. Kuwaiti officials plan to increase production to 4 million barrels of oil equivalent per day by 2020. Petroleum accounts for over half of GDP, 92% of export revenues, and 90% of government income.

 

With world oil prices declining, Kuwait realized a budget deficit in 2015 for the first time more than a decade; in 2016, the deficit grew to 16.5% of GDP. Kuwaiti authorities announced cuts to fuel subsidies in August 2016, provoking outrage among the public and National Assembly, and the Amir dissolved the government for the seventh time in ten years. In 2017 the deficit was reduced to 7.2% of GDP, and the government raised $8 billion by issuing international bonds. Despite Kuwait’s dependence on oil, the government has cushioned itself against the impact of lower oil prices, by saving annually at least 10% of government revenue in the Fund for Future Generations.

 

Kuwait has failed to diversify its economy or bolster the private sector, because of a poor business climate, a large public sector that employs about 74% of citizens, and an acrimonious relationship between the National Assembly and the executive branch that has stymied most economic reforms. The Kuwaiti Government has made little progress on its long-term economic development plan first passed in 2010. While the government planned to spend up to $104 billion over four years to diversify the economy, attract more investment, and boost private sector participation in the economy, many of the projects did not materialize because of an uncertain political situation or delays in awarding contracts. To increase non-oil revenues, the Kuwaiti Government in August 2017 approved draft bills supporting a Gulf Cooperation Council-wide value added tax scheduled to take effect in 2018.

Real GDP (purchasing power parity)

$209.74 billion (2019 est.)

$208.85 billion (2018 est.)

$206.274 billion (2017 est.)

note: data are in 2017 dollars

Real GDP growth rate

-3.3% (2017 est.)

2.2% (2016 est.)

-1% (2015 est.)

Real GDP per capita

$49,900 (2019 est.) note: data are in 2017 dollars

$50,500 (2018 est.) note: data are in 2017 dollars

$50,856 (2017 est.)

GDP (official exchange rate)

$134.638 billion (2019 est.)

Inflation rate (consumer prices)

1.5% (2017 est.)

3.5% (2016 est.)

Credit ratings

Fitch rating: AA (2008)

Moody's rating: A1 (2020)

Standard & Poors rating: AA- (2020)

note: The year refers to the year in which the current credit rating was first obtained.

GDP - composition, by sector of origin

agriculture: 0.4% (2017 est.)

industry: 58.7% (2017 est.)

services: 40.9% (2017 est.)

GDP - composition, by end use

household consumption: 43.1% (2017 est.)

government consumption: 24.5% (2017 est.)

investment in fixed capital: 26.5% (2017 est.)

investment in inventories: 3.5% (2017 est.)

exports of goods and services: 49.4% (2017 est.)

imports of goods and services: -47% (2017 est.)

Agricultural products

eggs, dates, tomatoes, cucumbers, poultry, milk, mutton, potatoes, vegetables, eggplants

Industries

petroleum, petrochemicals, cement, shipbuilding and repair, water desalination, food processing, construction materials

Industrial production growth rate

2.8% (2017 est.)

Labor force

2.695 million (2017 est.)

note: non-Kuwaitis represent about 60% of the labor force

Labor force - by occupation

agriculture: NA

industry: NA

services: NA

Unemployment rate

1.1% (2017 est.)

1.1% (2016 est.)

Youth unemployment rate (ages 15-24)

total: 15.4%

male: 9.4%

female: 30% (2016 est.)

Population below poverty line

N/A

Household income or consumption by percentage share

lowest 10%: NA

highest 10%: NA

Budget

revenues: 50.5 billion (2017 est.)

expenditures: 62.6 billion (2017 est.)

Budget surplus (+) or deficit (-)

-10% (of GDP) (2017 est.)

Public debt

20.6% of GDP (2017 est.)

9.9% of GDP (2016 est.)

Taxes and other revenues

41.8% (of GDP) (2017 est.)

Fiscal year

1 April - 31 March

Current account balance

$7.127 billion (2017 est.)

-$5.056 billion (2016 est.)

Exports

$72.83 billion (2019 est.) note: data are in current year dollars

$85.2 billion (2018 est.) note: data are in current year dollars

Exports - partners

China 20%, South Korea 16%, India 15%, Japan 10%, Taiwan 6%, Vietnam 5% (2019)

Exports - commodities

crude petroleum, refined petroleum, aircraft, natural gas, industrial hydrocarbon products (2019)

Imports

$59.65 billion (2019 est.) note: data are in current year dollars

$68.2 billion (2018 est.) note: data are in current year dollars

Imports - partners

China 14%, United Arab Emirates 12%, United States 10%, Saudi Arabia 6%, Japan 6%, Germany 5%, India 5% (2019)

Imports - commodities

cars, broadcasting equipment, natural gas, packaged medicines, jewelry (2019)

Reserves of foreign exchange and gold

$33.7 billion (31 December 2017 est.)

$31.13 billion (31 December 2016 est.)

Debt - external

$47.24 billion (31 December 2017 est.)

$38.34 billion (31 December 2016 est.)

Exchange rates

Kuwaiti dinars (KD) per US dollar -

0.3049 (2020 est.)

0.3037 (2019 est.)

0.304 (2018 est.)

0.3009 (2014 est.)

0.2845 (2013 est.)

NOTE: The information regarding Kuwait on this page is re-published from the 2022 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Kuwait 2022 information contained here. All suggestions for corrections of any errors about Kuwait 2022 should be addressed to the CIA or the source cited on each page.