Kuwait GDP grew 29pc in 2011; fastest since 2005
Kuwait, November 13, 2012
Kuwait's economy grew 29 percent in nominal terms last year, the fastest rate since 2005, as high crude prices helped boost output and revenue in the Opec member state, central bank data showed on Tuesday.
The bank tends not to release real GDP data until a much later date.
The data showed that the economy grew by a revised 12.7 percent in 2010 in nominal terms, according to a Reuters calculation based on the official data, down from 16.7 percent as previously reported.
Kuwait pegs its dinar to a basket of currencies and the government depends on income from crude oil for around 95 percent of its budget. While Kuwait is fiscally sound, the Gulf country is suffering from a political crisis triggered by a long-running row between the government and parliament, which has held up economic reforms and investment.
The economy is expected to grow 6.5-6.6 percent this year in real terms, central bank Governor Mohammad al-Hashel said last month. Analysts polled by Reuters in September were more conservative, forecasting 5.0 percent growth for 2012.
While Kuwait is in a fiscally strong position, with 13 consecutive years of budget surpluses, economists and policymakers have said the government's expenditure on salaries and benefits is not sustainable in the long run.
The heavily oil-reliant economy could face problems if there is a steep drop in the price of crude oil, they say.
Output of the oil and gas sector, which makes up 62 percent of the $158 billion economy, jumped 49.4 percent at current prices in 2011 compared to a 22.8 percent rise in the previous year.
Kuwaiti authorities often publish economic data long after the period in question has ended.
Last month, the central bank unexpectedly cut its key discount rate by 50 basis points to 2.0 percent, aiming to bolster the banking sector and support the economy after keeping the rate on hold since February 2010.
Analysts have said, however, that while the rate cut would help trim borrowing costs for businesses, it was not going to be enough to kick-start bank lending without a lasting solution to the political crisis. - Reuters
More Finance & Capital Market Stories
- Kuwait GDP growth to hit 3.5pc in 2014
- Gulf shares tumble over EM exposure cut
- GCC bonds to gain from macro-economic climate
- French Business Council Dubai members up 18pc
- Egypt economy growth seen less strong than thought
- Sharjah approves $4.2bn budget for 2014
- Saudi non-oil sector posts solid growth in Feb
- Seera total income rises to $34m
- NBAD approves 40pc cash dividends
- NBAD sees 8-10pc loan growth
- Al Basel Group launches investment arm
- Union Insurance posts $18m profit
- Oman warns banks on conflicts of interest
- Japan to lend Tunisia $480m
- 400 to join anti-laundering seminar in Riyadh
- Lebanese insurer to head Prague Club
- UAE's first REIT plans $135m IPO
- Bahrain banking industry outlook 'positive'
- New India Assurance opens Bahrain branch
- Qatar sets up mixed business incubator
- Kuwait budget spending up 8pc in April-Jan
- Thomson Reuters to host Mena IFR awards
- ADIB offers smartphone industry investment
- Gulf Finance House to start $3bn Tunisia project
- KFH completes ICT project upgrade
- Egypt urban annual inflation slows to 9.8pc
- BIBF signs deal with Palestinian institute
- Bahrain’s GDP set to expand 12pc
- KFH-Bahrain rebrands priority banking
- Bank Nizwa wins top Islamic bank award