#Kuwait should accelerate reforms to be less tied to oil price fluctuations - IMF | Reuters

Kuwait should accelerate reforms to be less tied to oil price fluctuations - IMF | Reuters

Kuwait needs to accelerate reforms to reduce the dependence of government policies on the rise and fall of oil prices, an International Monetary Fund (IMF) official said.

The oil-rich Gulf state faces near-term liquidity risks largely due to the absence of parliamentary authorisation for the government to borrow.

“Kuwait has high levels of buffers but they need to accelerate reforms,” said Jihad Azour, director of the Middle East and Central Asia Department at the IMF.

Kuwait has been hit hard by lower oil prices and the COVID-19 pandemic, but economic reforms have stalled due to repeated rows and deadlocks between cabinets and assemblies.

Ratings agency Fitch this week downgraded Kuwait’s outlook to “negative” from “stable”.