ECONOMICS

Main Crops: practically no crops; fish

Natural Resources: petroleum, fish, shrimp, natural gas

Major Industries: Petroleum, petrochemicals, desalination, food processing, construction materials, salt, constructi

 

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.

 

 

	1990	2000	2010	2020
GNI, Atlas method (current US$) (billions)	..	36.76	127.12	152.28
GNI per capita, Atlas method (current US$)	..	17,980	42,490	36,200
GNI, PPP (current international $) (billions)	74.72	135.15	239.39	248.38
GNI per capita, PPP (current international $)	..	66,080	80,010	59,040
GDP (current US$) (billions)	18.43	37.71	115.42	105.96
GDP growth (annual %)	34	4.7	-2.4	-8.9
Inflation, GDP deflator (annual %)	-7.4	20.5	11.1	-13.9
Agriculture, forestry, and fishing, value added (% of GDP)	..	0	0	0
Industry (including construction), value added (% of GDP)	..	..	66	45
Exports of goods and services (% of GDP)	45	56	67	53
Imports of goods and services (% of GDP)	58	30	30	45
Gross capital formation (% of GDP)	18	11	18	25
Revenue, excluding grants (% of GDP)	58.7	43.8	..	..
Net lending (+) / net borrowing (-) (% of GDP)	3.7	-5.6	..	..
States and markets
Time required to start a business (days)	..	35	35	19
Domestic credit provided by financial sector (% of GDP)	..	..	..	..
Tax revenue (% of GDP)	1.5	1.5	..	..
Military expenditure (% of GDP)	48.5	7.2	3.8	6.5
Mobile cellular subscriptions (per 100 people)	1	23.3	133	158.5
Individuals using the Internet (% of population)	0	6.7	61.4	99.1
High-technology exports (% of manufactured exports)	..	..	3	1
Statistical Capacity Score (Overall Average) (scale 0 - 100)	..	..	..	..
Global links
Merchandise trade (% of GDP)	60	71	80	64
Net barter terms of trade index (2000 = 100)	..	100	161	105
External debt stocks, total (DOD, current US$) (millions)	..	..	..	..
Total debt service (% of exports of goods, services and primary income)	..	..	..	..
Net migration (thousands)	-655	27	580	198