## Kuwait: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Kuwait

_IMF Staff Country Reports, December 9, 2024_

## Source details

**Canonical URL:** [Kuwait: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Kuwait](https://www.imf.org/en/publications/cr/issues/2024/12/07/kuwait-2024-article-iv-consultation-press-release-staff-report-and-statement-by-the-559194)

## Other formats

- [Markdown version](/en/publications/cr/issues/2024/12/07/kuwait-2024-article-iv-consultation-press-release-staff-report-and-statement-by-the-559194/index.md)
- [Structured JSON version](/en/publications/cr/issues/2024/12/07/kuwait-2024-article-iv-consultation-press-release-staff-report-and-statement-by-the-559194/index.json)
- [Bundle manifest](/en/publications/cr/issues/2024/12/07/kuwait-2024-article-iv-consultation-press-release-staff-report-and-statement-by-the-559194/bundle-manifest.json)

## Bibliographic details
- Published: December 9, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400294303.002

---

### Economic outlook and inflation
- The economy is projected to remain in recession under the baseline in 2024, then to recover over the medium term.
- The economy remains in recession, but a recovery has begun in the non-oil sector.
- Inflation is moderating.

### External and fiscal balances
- Lower oil prices and production have weakened the external and fiscal balances.
- Fiscal consolidation of about 13 percent of gross domestic product (GDP) should be implemented.
- Recommended fiscal consolidation pace: 1 to 2 percent of GDP per year to reinforce intergenerational equity.

### Monetary policy and exchange rate
- The exchange rate peg remains an appropriate nominal anchor for monetary policy.
- Continued efforts are needed to strengthen monetary policy transmission.

### Financial sector and stability
- Financial stability has been maintained.
- Systemic financial risks remain contained and prudently managed.
- Continued efforts are needed to maintain financial stability and enhance financial intermediation.

### Structural reforms and economic diversification
- The authorities aim to implement reforms to support the transition to a dynamic and diversified economy.
- A comprehensive and well-sequenced structural reform package is needed to:
  - Improve the business environment by raising efficiency,
  - Enhance transparency,
  - Further open up the economy.

### Risks and buffers
- The risks around the outlook are skewed to the downside.
- Substantial financial buffers are a source of resilience to external shocks.

*IMF Staff Country Report: Kuwait: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Kuwait*

---

## Content in this bundle

- **1kwtea2024001-print-pdf**
  - [1kwtea2024001-print-pdf (Markdown version)](/-/media/files/publications/cr/2024/english/1kwtea2024001-print-pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [1kwtea2024001-print-pdf (PDF)](/-/media/files/publications/cr/2024/english/1kwtea2024001-print-pdf.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/cr/issues/2024/12/07/kuwait-2024-article-iv-consultation-press-release-staff-report-and-statement-by-the-559194_