Kuwait GDP Seen Contracting 0.5% in 2017 After Oil Output Cut

A customer waits at the service counter of a coffee shop in Kuwait City, Kuwait.

Photographer: Tasneem Alsultan/Bloomberg

Economists now see Kuwait’s economy contracting by 0.5 percent this year after the gulf nation reduced its crude oil production to 2.7 million barrels per day, in line with the agreed OPEC target.

Non-oil GDP will grow 3.2 percent in 2017, but growth including oil will only start to recover in 2018, according to the survey.

Key Takeaways

  • The economy will contract 0.5% in 2017, expand 2.3% in 2018 and 2.9% in 2019, according to a survey conducted by Bloomberg News.
  • Survey of 9 economists conducted from Sept. 17 to Sept. 20
  • 2017 CPI forecast at +3.2% y/y versus prior survey +3.3%
  • 2018 CPI forecast unchanged at +3.5% y/y versus prior survey
  • See graph of GDP forecasts

Full Survey Results

Avg.Avg.Avg.
201720182019
GDP YOY%-0.5%2.3%2.9%
 Previous survey0.7%2.4%n/a
CPI YOY%3.2%3.5%2.7%
 Previous survey3.3%3.5%n/a
Current Acct. % GDP4.3%5.5%7.4%
 Previous survey5.2%6.5%n/a
Budget as a % GDP-7.3%-6.5%n/a
 Previous survey-8.6%-4.2%n/a
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