Kuwait companies pessimistic about Q2 - survey

Kuwaiti companies expect negative outcomes during the second quarter of 2009, due to the slowing global economic growth, a new survey has revealed.

The poll published by the Dun and Bradstreet in cooperation with Muthana Investment Company of Kuwait Finance House (KFH), said that 74 percent of companies were pessimistic, 19 percent were optimistic, and seven percent were unsure about the months to come.

The survey, which measures the level of trust in the economic sector, is designed to gather the expectations of commercial companies, news agency KUNA reported.

Up to 43 percent of participating companies in the survey expect the economy to recover in the beginning of 2010, while 27 percent say it will recover this year.

Director General of Muthana Investment Company, Abdulaziz Al-Marzouq said that the Kuwaiti economy was going through the most difficult stage of its history.

"The negative effects of tightening banking regulations and not decreasing the interest rate, and the ambiguity concerning new projects, in addition to the drop in oil prices, increased investors' fears and weakened the market performance in 2009," he said.

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