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How the Second-Richest Arab Nation Is Reacting to Oil Shock

Kuwait is bolstering capital spending while cutting waste
Kuwait hires Oliver Wyman to advise on debt strategy

Bloomberg business news — Kuwait Says OPEC Strategy Working

By

Zainab Fattah and

May 19, 2016, 9:16 AM UTCUpdated onMay 19, 2016, 1:05 PM UTC

The man in charge of helping Kuwait navigate the global oil-price shock said the Middle East’s second-richest nation is responding to the crisis by “spending as much as possible” to bolster economic growth.

Anas Al-Saleh, Kuwait’s deputy premier, said that the government isn’t canceling any projects. At the same time, authorities are cutting wasteful spending to plug a budget deficit that could exceed 13 percent of gross domestic product in 2016, according to International Monetary Fund estimates.