## Kuwait: 2019 Article IV Consultation; Press Release; Staff Report; and Statement by the Executive Director for Kuwait

_IMF Staff Country Reports, April 2, 2019_

## Source details

**Canonical URL:** [Kuwait: 2019 Article IV Consultation; Press Release; Staff Report; and Statement by the Executive Director for Kuwait](https://www.imf.org/en/publications/cr/issues/2019/04/02/kuwait-2019-article-iv-consultation-press-release-staff-report-and-statement-by-the-46729)

## Other formats

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## Bibliographic details
- Published: April 2, 2019
- Series: IMF Staff Country Reports

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### Executive summary
- Growth has strengthened, and fiscal and external positions improved due to higher oil prices.
- Increased uncertainty about oil price prospects underscores the need to reduce dependence on oil and increase savings for the future.
- The key priority is to build national consensus around equitable and well-sequenced reforms to underpin fiscal consolidation and promote the private sector.
- While authorities’ efforts to strengthen the fiscal accounts are welcomed, more ambitious reforms will be needed to secure adequate savings for future generations and reduce financing needs.

### Fiscal policy and consolidation
- Reforming the public wage bill, subsidies, and transfers is recommended to support fiscal consolidation.
- Raising non-oil revenue is identified as necessary to reduce dependence on oil receipts.
- Enhancing the fiscal policy framework and governance is expected to increase the efficiency of spending on human and physical capital.

### Structural reforms and private sector development
- Promoting the private sector is central to creating jobs for the large number of nationals joining the labor force over the next decade.
- A vibrant private sector is essential to absorb new entrants and reduce fiscal pressures.

### Key themes and policy priorities
- Reduce dependence on oil and increase savings for future generations.
- Build national consensus for equitable and well-sequenced reforms.
- Implement more ambitious measures than those currently undertaken to secure adequate savings and reduce financing needs.
- Improve fiscal governance and the fiscal policy framework to enhance spending efficiency.

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## Content in this bundle

- **1kwtea2019001**
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_Source: https://www.imf.org/en/publications/cr/issues/2019/04/02/kuwait-2019-article-iv-consultation-press-release-staff-report-and-statement-by-the-46729_