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IMF Staff Concludes Staff Visit to Kuwait

Finance Kuwait City 29 Dec 22
IMF Staff Concludes Staff Visit to Kuwait
An IMF mission held discussions with the Kuwaiti authorities in Kuwait City during December 11-18.
Fee
Event Location
Kuwait, Kuwait
Area
Kuwait City
Start Time
29 December 2022, 12:00 AM
End Time
31 January 2023, 12:00 AM
Website

An International Monetary Fund (IMF) mission, led by Mr. Yasser Abdih, held discussions with the Kuwaiti authorities in Kuwait City during December 11-18, 2022.

Kuwait’s economic recovery continues. Strong vaccination efforts and the authorities’ swift and decisive responses to the COVID-19 crisis have allowed for the relaxation of all social distancing restrictions and supported economic recovery . Overall real GDP growth is estimated to have rebounded from -8.9 percent in 2020 to 1.3 percent in 2021. It is projected to further increase to above 8 percent in 2022, supported by increased oil production, high oil prices, and sustained improvement in domestic demand.

In 2023, growth is likely to moderate, reflecting slowing external demand and oil production cuts under the OPEC+ agreement. Direct adverse spillovers from the Russia’s war in Ukraine have been contained so far given the limited trade and financial linkages with both countries.

At the conclusion of the mission, Mr. Abdih said that, '“Inflation has been contained, benefiting from monetary tightening and limited passthrough from higher global food and energy prices supported by administered prices and subsidies. With higher oil prices and output, the overall fiscal and current account surpluses increased significantly from last year."

“With strong bank buffers and prudent oversight and proactive monitoring of financial risks by Central Bank of Kuwait, the banking system has weathered the recent shocks well. Banks continue to be well-capitalized and liquid, financial soundness indicators are healthy, and private sector credit growth remains strong," he added.

He also said that the authorities continue to implement measures to improve fiscal revenue collection and spending efficiency. Efforts are ongoing to promote digital transformation, advance financial technology, and invest in green energy.

He also appreciated the authorities for their hospitality and the candid and productive discussions.




IMF Staff Visit Kuwait



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