Kuwait: Staff Report for the 2014 Article IV Consultation
IMF Staff Country Reports, December 9, 2014
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- Kuwait: Staff Report for the 2014 Article IV Consultation
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Bibliographic details
- Published: December 9, 2014
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498372541.002
Economic activity and growth projections
- Non-oil growth in 2014 is projected at 3.5 percent, driven by a combination of continued increase in domestic consumption and some pick-up in government capital spending and private investment.
- Flat oil production would keep overall real GDP growth positive at 1.3 percent.
- The medium-term outlook is favorable: non-oil GDP growth is expected to pick up to 4 to 5 percent in the medium term, supported by government investment in infrastructure and the oil sector, and by consumption.
Prices and external/fiscal balances
- The average inflation rate is forecast to remain at about 3 percent.
- The current account and fiscal surpluses are expected to remain high.
Key drivers and policy-relevant factors
- Domestic consumption: continued increase is a primary driver of non-oil growth.
- Public investment: a pick-up in government capital spending supports near-term non-oil growth and medium-term expansion through infrastructure and oil-sector investment.
- Private investment: some pick-up in private investment contributes to non-oil activity.
- Oil sector: flat oil production in 2014 constrains overall real GDP growth despite robust non-oil performance.
Source: Kuwait: Staff Report for the 2014 Article IV Consultation (IMF Staff Country Report No. 2014/333).