Kuwait’s economy is set to contract for the first time since 2017 as its core oil-sector is ravaged by the impact of the Covid-19 pandemic on the global economy. Kuwait’s economy was already slowing prior to the onset of the pandemic, as a weak global oil sector weighed heavily. Preliminary government figures put overall real GDP growth at 0.4% in 2019, down from 1.2% the previous year.
With the global economy in a Covid-19-induced meltdown, Kuwait faces a bumpy outlook for the remainder of 2020. That said, the IMF’s latest World Economic Outlook (WEO) released last week, estimates that Kuwait’s economy will fare better than its fellow Gulf Cooperation Council (GCC) members. The IMF projects a 1.1% contraction for Kuwaiti this year, against a GCC average of 2.6%, and a global average of 3% (MEES, 17 April). (CONTINUED - 318 WORDS)