Kuwait: 2025 Article IV Consultation-Press Release; and Staff Report
IMF Staff Country Reports, February 24, 2026
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- Canonical URL
- Kuwait: 2025 Article IV Consultation-Press Release; and Staff Report
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Bibliographic details
- Published: February 24, 2026
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229039727.002
Summary
- Kuwait has started the transition from an oil dependent welfare state towards a dynamic and diversified economy.
- Reform momentum has been building, starting with enactment of the Financing and Liquidity Law.
- Alongside a public investment scale-up, the authorities are working on wide-ranging fiscal and structural reforms, including to energy subsidies and mortgage lending.
Key findings and analysis
- Transition objective:
- Move from an "oil dependent welfare state" to a "dynamic and diversified economy."
- Recent reform steps:
- Enactment of the Financing and Liquidity Law marked the start of reform momentum.
- Policy focus areas:
- Public investment scale-up.
- Fiscal reforms, including changes to energy subsidies.
- Structural reforms, including changes to mortgage lending.
Policy recommendations and reform priorities
- Sustain and deepen reform momentum initiated by the Financing and Liquidity Law.
- Prioritize effective public investment scale-up while maintaining fiscal sustainability.
- Implement wide-ranging fiscal reforms, with attention to:
- Energy subsidy reform.
- Advance structural reforms to support diversification, with attention to:
- Mortgage lending measures to deepen financial intermediation and support private sector activity.
Content in this bundle
- 1kwtea2026001-source-pdf