IMF Staff Country Reports

Kuwait: Selected Issues

Publication Date:

August 1, 2011

Electronic Access:

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Summary:

The expenditure multipliers in Kuwait are likely to be high, and mostly operate through capital expenditure. Kuwait’s large state-controlled endowment of natural resource, pegged exchange rate regimes, and relatively open financial accounts are the mainstay. The nominal effective exchange rate diverged from the set pattern owing to higher inflation. Estimates from methodologies for exchange rate assessment indicate mixed results. Macroprudential policies in Kuwait would strengthen the management of systemic risk by reducing the probability and the impact of a financial boom-bust cycle on economic activity.

Series:

Country Report No. 2011/218

Subject:

Balance of payments Corporate sector Current account Economic sectors Expenditure Financial sector policy and analysis Macroprudential policy Systemic risk