Kuwait : 2020 Article IV Consultation-Press Release; Staff Report; and Staff Supplement

Author/Editor:

International Monetary Fund. Middle East and Central Asia Dept.

Publication Date:

March 30, 2020

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

This 2020 Article IV Consultation with Kuwait highlights that non-oil growth strengthened to estimated 3 percent in 2019, propelled by government and consumer spending. The challenge to reduce dependence on oil and boost savings has become more urgent. The subdued forecast for oil revenues is weighing on near-term growth and fiscal and external balances. Embedding fiscal measures in a comprehensive reform package that promotes private sector growth, strengthens governance and accountability, and improves public services would help build broad support for reforms. A rules-based fiscal framework would improve management of oil revenues. A rule-based framework would help anchor fiscal policy on a long-term objective of intergenerational equity. It should include a well-calibrated operational rule that helps reconcile long-term savings and near-term economic stabilization objectives. Financial sector reforms should focus on bolstering resilience and deepening inclusion. Sustaining reforms to foster private sector-led and diversified growth will be critical. With limited scope for public employment going forward, a vibrant private sector must emerge to absorb the large number of Kuwaitis entering the labor market in coming years.

Series:

Country Report No. 20/89

Subject:

English

Publication Date:

March 30, 2020

ISBN/ISSN:

9781513538563/1934-7685

Stock No:

1KWTEA2020001

Format:

Paper

Pages:

80

Please address any questions about this title to publications@imf.org