Kuwait’s economy is in the middle of a testing period, with its recently released budget for 2020-21 pointing to a stonking $30bn deficit. The IMF this week concluded its Article IV consultation for Kuwait and didn’t pull its punches.

The concluding statement highlights that “subdued oil prices and output are weighing on near-term growth prospects” and warns that “the recent run-up in spending has worsened the fiscal position and eroded liquid buffers. Without a course correction, the fiscal and financing challenges would intensify.” (CONTINUED - 996 WORDS)