Kuwait, (Business News Report)|| Kuwait’s budget is expected to achieve a large surplus during the current fiscal year for the first time in eight years.
The National Bank of Kuwait expected that Kuwait’s budget would achieve a large fiscal surplus, the first of its kind since 2014.
In a report by the Bank, it confirmed that the government budget in the current fiscal year will record a large fiscal surplus of 8.6% of GDP.
He explained that this surplus will come thanks to the significant increase in oil revenues and the reduction of expenditures.
The National Bank of Kuwait stated that the high economic growth in 2022 compensated for the losses caused by the Coronavirus pandemic, as private consumption rates improved, real estate activity increased, oil prices rose and its production increased.
It indicated that the gross domestic product is scheduled to rise again to approach the pre-pandemic levels by the end of this year, recording a growth of 8.5%.
It is also expected that the oil revenues resulting from the rise in prices will contribute to maintaining the growth of the Kuwaiti economy in light of the difficult economic conditions globally due to the Russian war, high inflation rates, tightening monetary policy and the pressures of pandemic.
As for the non-oil sector, it will maintain strong growth rates in light of the authorities’ work on a new strategic plan to enhance its growth in the medium and long term, with special emphasis on expanding the scope of private sector participation.
In a related development, the Bank of Kuwait report stated that the supply chain disruptions caused by the pandemic and the consumer demand continue to push the consumer price index in Kuwait to rise.
The bank pointed out that the inflation rate reached its highest level in 10 years at 3.4% in 2021, and is likely to exceed 4% this year.
On April 20, a report issued by the International Monetary Fund revealed that Kuwait will achieve the best economic growth among the Gulf countries during the current year.
According to the report’s data, Kuwait will achieve economic growth this year by 8.2%, compared to 1.3% in 2021.
Kuwait is experiencing a wonderful economic year, due to the significant rise in oil prices, after difficult years due to the Corona pandemic.