Monday , July 26 2021

4.1 percent growth of domestic production Kuwait … real



IMF: 4.1 percent growth of domestic production Kuwait … real

Over the next year

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Kuwait needs further emphasis on its future financial position

The Gulf needs to provide a million jobs per year for five years

Middle East and Central Asia The regional economic outlook for the Middle East and Central Asia envisioned that Kuwait's real growth this year would grow by 2.3 percent and by 4.1 percent in 2019.
While the financial situation in Kuwait is balanced, while the financial situation continues to improve, he stressed that Kuwait and other gulf countries must emphasize the financial position over the coming years to ensure intergenerational equality.
The report noted that private investment rates in Kuwait's GDP remained stable at a large scale, while at the same time achieving modest gains, while pointing out that a positive impact of investors' confidence in oil prices could be positively influenced in some countries, including Kuwait, Saudi Arabia and UAE Improve short-term economic prospects.
He stressed that strong oil revenues provide the Gulf countries with the appropriate financial space while at the same time improving oil-free activities by applying some financial measures, such as VAT in Saudi Arabia and the United Arab Emirates, is expected to improve financial balances for oil exporters in region. He noted growing risk in the medium term due to fears of tightening global financial conditions and the negative effects of trade tensions on global growth, which would exacerbate oil price pressures.
High oil yields contributed significantly to the recovery of public expenditure deficits in many countries, including Saudi Arabia and the United Arab Emirates, and expected fiscal deficits in the region fell from 5.1 percent of GDP in 2017 to 1.6 percent over the course of the year and around 0.1 percent in 2019, with an average of about 1.1 percent between 2020 and 2023.
The report states that, despite the differences in financial positions, all oil exporting countries are faced with similar financial challenges in the medium term. He explained that due to the high dependence on oil revenues, the average cost of fiscal equivalents in 2020 and 2023 will be higher than current oil prices, Kuwait, Iraq, Qatar, Saudi Arabia and the United Arab Emirates.
The IMF announced that GCC's economic growth this year will recover to 2.4 percent and rise to 3 percent in 2019, pointing out that these countries should provide at least one million jobs per year over the next five years.
He stressed that growth rates are being driven by public investment projects, including projects of the five-year Kuwait program and infrastructure projects in Qatar, in preparation for World Cup maintenance in 2022, with the UAE preparing for hosts of the Expo 2020 exhibition hosts.
The report emphasized that the countries of the region are vulnerable to the transfer of the current pressure on emerging market financial markets, with the possibility of further spillover from Turkey in two regions, through banking and channel connections. The report emphasized that banks owned by the Middle East and North Africa economies account for about 7 percent of banking assets in Turkey with a stock of $ 5.3 billion, with the largest stake in Qatar, followed by Lebanon, Kuwait and Libya.

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