As with all oil-dependent economies, Kuwait is facing a tumultuous year. A recent report from the National Bank of Kuwait (NBK) warns that the deficit could hit KD12bn ($39bn) in the 2020-21 financial year (40% of GDP) after mandatory transfers to the Future Generational Fund. Kuwait initially budgeted for a $30.3bn deficit this year (MEES, 17 January). In the continued absence of a new debt law, “funding of the deficit could be a challenge, and would exhaust most of the estimated KD16bn ($52bn) remaining in the General Reserve Fund” says NBK.

The IMF said earlier this year the GRF could be “exhausted in less than two years” (MEES, 31 January). (CONTINUED - 180 WORDS)