We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Tue 20 Jul 2010 09:57 PM

Font Size

- Aa +

Kuwait GDP to grow in 2010 after previous years drop

Real GDP for oil sector expected to increase by 1% and non oil sectors by 2.5%.

Kuwait GDP to grow in 2010 after previous years drop
GDP GROWTH: Kuwaits GDP is expected to grow this year after dropping 4.6% in 2009. (Getty Images)

Kuwait's real GDP is expected to grow this year after dropping 4.6 percent in 2009, the central bank governor said in remarks published on Tuesday.

Sheikh Salem Abdul Aziz al Sabah told the newspaper an Nahar that real GDP for 2009 was estimated to be 18.8 billion dinars ($64.83 billion), compared to $67.8 billion in 2008.

He said real GDP for the oil sector was expected to grow by 1 percent in 2010, and the non oil sectors by around 2.5 percent. The governor did not provide figures or an overall percentage for this year.

Real oil sector GDP for 2009 was forecast to drop 11.4 percent to $24.3 billion, and real non oil sectors were forecast to record "no significant growth" at $40.1 billion, he said.

Demand for oil dropped in 2009 because of the slowdown in the world economy after the economic crisis. Oil is the mainstay of Kuwait's economy.

Inflation rate in the Gulf Arab state was expected to stay at "relatively stable levels" of 4 percent for 2009, Sheikh Salem told the daily.

Gulf states, which invest a large chunk of their foreign exchange reserves in US assets, have no flexible monetary policy to control inflation, which climbed to record, double digit peaks in 2008.

Kuwait's central bank surprised the markets in February, cutting its key interest rates by 25 to 50 basis points to support growth, expecting inflation to stay low. The Gulf state's discount rate is currently at 2.5 percent. (Reuters)

Arabian Business: why we're going behind a paywall

For all the latest Kuwait news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.