The World Bank has upgraded its growth projections for Kuwait’s economy in 2024 to 2.8%, surpassing its earlier forecast of 2.6% made in January. Similarly, for 2025, the Bank now anticipates a growth rate of 3.1%, up from the previous estimate of 2.7%. These revisions are outlined in the report titled “Conflicts and Debts in the Middle East and North Africa.” The expected growth follows a contraction of Kuwait’s GDP by 0.1% in 2023, which contrasts with the significant 7.9% growth experienced in 2022. In terms of per capita GDP, Kuwait is projected to see an acceleration, with a growth of 1.9% in 2024, compared to a slight contraction of 0.1% in the previous year.This growth trend is expected to continue, reaching approximately 2.2% in 2025. Regarding the current account balance, it is forecasted to decrease, representing 22.7% of GDP in 2024, down from 29.3% in the previous year, and further declining to 21.9% in 2025. It’s worth noting that Kuwait’s public debt law expired in September 2017, with no new state debt law approved since then, despite the introduction of a draft law allowing the issuance of sukuk. For the Middle East and North Africa region, the World Bank expects GDP to rise to 2.7% in 2024, a slight improvement from 1.9% in 2023. Similarly, both oil-importing and oil-exporting countries are expected to experience more balanced growth rates compared to 2022, when higher oil prices favored growth in oil exporting nations. Meanwhile, the International Monetary Fund (IMF) has revised its forecasts for the Kuwaiti economy for the current year, projecting a deficit of 1.4% in GDP for 2024, a significant improvement from the previously anticipated 3.6%. Additionally, the IMF expects Kuwait’s GDP to grow by 3.8% in 2025.According to the IMF’s April 2024 forecast report titled “The Recovery of the Global Economy Is Steady but Slow and Varies According to Regions,” Kuwait’s financial balance is expected to decline from 32.8% of GDP in 2023 to 30.1% in 2024 and further to 27.1% in 2025. Inflation rates in Kuwait are forecasted to reach 3.2% in 2024 and 2.7% in 2025, down from 3.6% in 2023. The IMF also adjusted its expectations for the Middle East and Central Asia region, forecasting growth to rise from 2% in 2023 to 2.8% in 2024 and further to 4.2% in 2025. This adjustment is attributed to a decline in non-oil activity and oil revenues in some regional countries. Globally, the IMF raised its expectations for economic growth to 3.2% in 2024, driven by the strength of the US economy and certain emerging markets. It maintained its 2025 growth forecast at 3.2% but cautioned about ongoing inflation and geopolitical risks. (ICE KUWAIT)

Fonte notizia: ARAB TIMES