## Kuwait: Selected Issues

_IMF Staff Country Reports, September 18, 2023_

## Source details

**Canonical URL:** [Kuwait: Selected Issues](https://www.imf.org/en/publications/cr/issues/2023/09/15/kuwait-selected-issues-539191)

## Other formats

- [Markdown version](/en/publications/cr/issues/2023/09/15/kuwait-selected-issues-539191/index.md)
- [Structured JSON version](/en/publications/cr/issues/2023/09/15/kuwait-selected-issues-539191/index.json)
- [Bundle manifest](/en/publications/cr/issues/2023/09/15/kuwait-selected-issues-539191/bundle-manifest.json)

## Bibliographic details
- Published: September 18, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400255434.002

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### Summary and Scope
- This Selected Issues paper empirically investigates the banking sector and macroeconomic spillovers to Kuwait from US monetary policy tightening.
- It focuses on pass-through from the US policy rate to lending and deposit rates in Kuwait, the dependence of spillovers on oil prices relative to their fiscal breakeven, and implications for non-oil gross domestic product growth.

### Key Findings
- Pass-through from the US policy rate to lending and deposit rates in Kuwait is high in the short run, and complete in the long run.
- The impact of US monetary policy tightening on the Kuwaiti economy depends on the level of oil prices relative to their fiscal breakeven.
- The estimation results suggest that the negative impact of US monetary policy tightening on non-oil gross domestic product growth depends on the level of oil prices.
- The overall growth impact of US monetary policy tightening is found to be larger and more persistent when oil prices are below their fiscal breakeven level.
- Spillovers from US monetary policy tightening to the Kuwaiti economy depend on oil prices.
- Market interest rates in Kuwait comove strongly with the US policy rate.

### Subjects and Keywords
- Subject: Expenditure, Fiscal governance, Fiscal policy, International organization, Monetary policy, Monetary tightening, Oil prices, Prices
- Keywords: bank interest interest rate, Fiscal governance, Global, monetary policy spillover, Monetary tightening, oil GDP growth, Oil prices, projection regressions--impact, tightening cycle

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## Content in this bundle

- **Kuwait: Selected Issues; IMF Country Report No. 23/332; July 20, 2023**
  - [Kuwait: Selected Issues; IMF Country Report No. 23/332; July 20, 2023 (Markdown version)](/-/media/files/publications/cr/2023/english/1kwtea2023002.pdf.md){rel="alternate" type="text/markdown"}
  - [Kuwait: Selected Issues; IMF Country Report No. 23/332; July 20, 2023 (PDF)](/-/media/files/publications/cr/2023/english/1kwtea2023002.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2023/09/15/kuwait-selected-issues-539191_