IMF calls for "strong" fiscal consolidation in Kuwait | Reuters
The International Monetary Fund said on Thursday Kuwait would need strong fiscal consolidation to support growth after its finances were battered last year.
The Gulf state's economy shrank by 8% last year, the Fund said in a statement on Thursday, adding that the country's fiscal balance worsened significantly year-on-year.
Kuwait, like other oil exporters in the region, was hurt by the double shock of low oil prices and the COVID-19 pandemic, but a standoff between government and parliament has added pressure as reforms needed to refill state coffers have stalled.
The IMF expects a gradual recovery and said that, as the recovery firms up, "strong fiscal consolidation and structural reforms would be needed to preserve fiscal buffers and strengthen growth."
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