Kuwait’s economy will recover in 2022
Monday, 09 28 2020, Category: Economy, Country: Kuwait
The international credit rating agency, Standard & Poor’s (S&P), said that the rating risks related to the Kuwaiti economy is that Kuwait is completely dependent on oil revenue which is 90% of its exports.
The prospects of the oil industry have been weak significantly due to the corona pandemic subsequently there has been a sharp drop in travel industry. Oil industry has played a major role in Kuwait’s economic performance.
The impact of the epidemic on the oil industry will have a direct impact on the wider Kuwaiti economy, similar to the situation in most other countries of the world during the current year.
Basic economic expectations focus on a decline in Kuwait’s GDP by 7% this year, and it is not expected to recover next year because we estimate that the rate of economic growth in it will be zero, and this is largely due to the production cuts agreed upon
Standard & Poor’s expected the recovery of the Kuwaiti economy to gather momentum from 2022, in addition to real GDP growth on average to reach 7% during 2022 and 2023.
The agency pointed out that the per capita share of GDP decreased from 28.6 thousand dollars during the past year to 22,000 dollars in 2020, to rise again to 25.7 thousand dollars during 2021. With regard to the inflation index, the agency expected it to decline to 1% during the current year, and then rise to 1.5% in 2021.