Friday 25 September 2020

#Kuwait’s economy will recover in 2022 | ZAWYA MENA Edition

Kuwait’s economy will recover in 2022 | ZAWYA MENA Edition:

The international credit rating agency, Standard & Poor’s (S&P), said that the rating risks related to the Kuwaiti economy is that Kuwait is completely dependent on oil revenue which is 90% of its exports.

The prospects of the oil industry have been weak significantly due to the corona pandemic subsequently there has been a sharp drop in travel industry. Oil industry has played a major role in Kuwait’s economic performance.

The impact of the epidemic on the oil industry will have a direct impact on the wider Kuwaiti economy, similar to the situation in most other countries of the world during the current year.

Basic economic expectations focus on a decline in Kuwait’s GDP by 7% this year, and it is not expected to recover next year because we estimate that the rate of economic growth in it will be zero, and this is largely due to the production cuts agreed upon. 

Standard & Poor’s expected the recovery of the Kuwaiti economy to gather momentum from 2022, in addition to real GDP growth on average to reach 7% during 2022 and 2023.

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