#Kuwait's economic recovery faces 'substantial' risks - IMF | Reuters

Kuwait's economic recovery faces 'substantial' risks - IMF | Reuters

Kuwait's economic recovery is ongoing but risks to the oil producer's outlook "remain substantial" and gridlock between the government and parliament continues to delay reforms, the International Monetary Fund said on Wednesday.

The IMF's executive board, in an assessment following "Article IV" consultations with the Kuwaiti government, said real gross domestic product (GDP) is seen slowing to just 0.1% this year after 8.2% growth in 2022, mainly due to oil production cuts.

Kuwait is part of OPEC+, a producer group comprising the Saudi-led Organization of the Petroleum Exporting Countries and Russia-led allies, which has been cutting crude output since November to prop up prices.

The IMF in May had forecast real GDP to slow to 0.9%. Despite the expected stagnation, the IMF on Wednesday forecast real non-oil GDP growth at 3.8% this year from 4% in 2022.

"Given Kuwait's large fiscal and external buffers, it can undertake needed reforms from a position of strength. However, political gridlock between the government and Parliament could continue to delay reforms," the IMF said.