Kuwait will probably struggle to sustain its level of government spending in the medium term because oil prices may fall, a World Bank official said on Tuesday, warning that the Gulf state's economic development plans were also at risk because of the indifference of the private sector.
Bassam Ramadan, country manager for Kuwait at the World Bank, said the average price of various types of crude oil could fall by 10-15 percent from current levels to around $85 per barrel by 2020.
This would put pressure on the oil exporter's state finances, especially given a series of public sector wage hikes over the past six months, he said.
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