Kuwait’s freshly-released draft 2019-20 budget paints a stark picture that highlights the emirate’s vulnerability to oil price changes. Revenues are slated to fall by nearly 24% in real terms, although in reality the drop-off is unlikely to be quite so stark.
The draft budget for the year beginning 1 April projects a deficit of $25.6bn, which is a massive swing on the current year. Data for the first seven months (to October) indicates a first budget surplus in five years of $11.5bn. While this figure will likely come down thanks to oil prices softening since November, a substantial surplus still appears to be on the cards. (CONTINUED - 837 WORDS)
