Kuwait’s economy is forecast to expand by around three percent this year and 4.3 percent in 2011, according to a study by the National Bank of Kuwait (NBK).
In 2009, lower oil prices and the global downturn saw nominal gross domestic product (GDP) slump by nearly 21.2 percent to KD31.5bn ($109.57bn), NBK said.
Kuwait, which controls around a tenth of global oil wealth and is the fifth largest economy in the region, is expected to enjoy a rebound in GDP of around eighteen percent, the study added.
“The improvement should come as more large projects come on line,” according to a report by Emirates 24/7.
The sectors forecast to see the greatest growth are banking and transportation. The transport sector has doubled in size and now represents eight percent of GDP, while the financial sector has grown to fourteen percent, up from six percent a few years ago.
In the long term, the Kuwait economy needs to increase the size of the non-oil economy, the report added.
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