Dubai PR Network, Online Press Release from Dubai and Middle East
Filter PR by
  
Kuwait is well placed to withstand lower oil prices

Doha, 19 March 2015: QNB Group has published its Kuwait Economic Insight 2015. The report examines recent developments and the outlook for Kuwait’s economy. Kuwait is well placed to withstand lower international oil prices with strong macroeconomic fundamentals and the lowest breakeven oil prices amongst the GCC countries.

According to the report, Real GDP is projected to slow in 2015 (1.0%) as the government cuts subsidies before recovering in  2016 (1.8%) and 2017 (3.3%) as major development projects get underway. 

In the hydrocarbon sector, the government plans to invest USD100bn in 2015-19 on boosting production, upgrading refineries, petrochemicals and transportation—the Burgan oil project, among others, should accelerate oil production growth starting in 2017. 

Non-hydrocarbons are expected to be the main engine of growth, driven by government investments, including the Kuwait Metro, the new port and the redevelopment of the airport.

Inflation is expected to rise as subsidies are reduced, with the largest impact in 2015 (4.2%), subsiding to an average 4.0% in 2016-17. 

The government has announced plans to substantially cut current spending in 2015, mainly through the removal of subsidies on diesel, electricity and water, healthcare and petrol. 

Foreign inflation is likely to slow in 2015 as commodity prices fall on weak global demand, but this is expected to be reversed in 2016-17, leading to higher foreign inflation.

A small fiscal surplus is expected in 2015 (1.6% of GDP) as the government cuts back expenditure; the surplus is projected to widen in 2016-17 (4.9% of GDP on average) as hydrocarbon revenues recover on higher oil prices

The government has announced plans for a 20% cut in current spending in 2015, which will mainly be achieved by reducing subsidies 

This will moderate expenditures throughout 2015-17 despite a growing wage bill and an increasing amount of public investment
Public debt remains low at 6.2% of GDP at end-2014, while the government has a large positive foreign asset position through its sovereign wealth fund

We expect slower deposit growth in 2015 as lower fiscal surpluses reduce oil-related flows to the banking sector, but this should reverse in 2016-17
Credit growth will be slightly faster on robust consumer lending

Kuwait’s strong macroeconomic fundamentals should support asset quality going forward; we therefore expect profitability to rise on falling NPLs and high capitalisation.

Other recent QNB Economic Insight reports include China, India, Indonesia, Jordan, Kingdom of Saudi Arabia, Kuwait, Oman and UAE are available on the QNB Group website. QNB Group operates in 26 countries in Asia, Europe, the Middle East and North Africa and its economic reports leverage its knowledge of these markets to provided added value for its clients and counterparties.

Posted by : GoDubai PR Dept, -
Viewed 56144 times
PR Category : Energy and Industry
Posted on : Thursday, March 19, 2015  4:00:00 PM UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of DubaiPRNetwork.com.
Email this article Print this article

Share this article with your friends and followers
NewsVine
Back to

Related Stories


 
 
Most Viewed Press Release posted in the last 7 days
Preparing for a New Post-pandemic Economic Era in Mena [4116-Views]
Code 11.59 by Audemars Piguet – New Tones of Elegance [3616-Views]
Panasonic Jaguar Racing Management Team Discuss Formula E's Return to Racing in Berlin [3407-Views]
Pandora ME for Every Side of You [3198-Views]
“CATRICE” Perfect Look for “Back to the Office” [2886-Views]
Parmigiani Fleurier Toric Fleur' [2628-Views]
Newest LG True Wireless Earbuds Self-clean, Sound Great With Meridian Audio [2358-Views]
Your Guide to Choosing the Right Face Mask [2337-Views]
Get Summer Ready With Magnitone London! [2132-Views]
Kristina Fidelskaya - An Escape, With 'La Pause' Spring / Summer 2020 Collection. [1960-Views]
Smash Summer Fitness Goals with 100 Workout Modes on the HONOR MagicWatch 2 [1931-Views]
Dubai Well Poised for Growth in New Business Entities' [1931-Views]
TishTash Eid Al-Adha Gift Guide 2020 [1927-Views]
Newly Launched HONOR 9A Offers Stunning Photography Anytime Anywhere [1919-Views]
District 2020 forms strategic partnerships with Dubai SME and MBRIF to support growth of U... [1906-Views]
Taste the Summer With Wild & the Moon's Latest Menu Drop! [1845-Views]
Nahdi Medical Company Transforms its Financial Management with Infor [1812-Views]
Comprehensive Study of Refugee Children's Academic, Social, and Emotional Learning Outcome... [1800-Views]
DHA Signs MoU with University of Sharjah [1763-Views]
Wonder Ingredients For Powerful Skincare [1763-Views]
Dubai Summer Surprises Best Buys - Springfield's Hottest Deals [1751-Views]
The New Season of Master Maserati Programme Gets Underway [1747-Views]
Marking International Day Against Drug Abuse: Mohap Provides Addiction Treatment and Rehab... [1730-Views]
Alstom at Forefront of Hygiene & Safety Innovation for Transport & Mobility in a COVID-19 ... [1677-Views]
UAE's First-Ever Fully Sponsored Flight to India [1669-Views]
 
RSS Facebook Twitter LinkedDin
 
Top Sections
 
Top Stories