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FINANCIAL NEWS
IMF sees Kuwait’s GDP slow to 6.6% in 2012
18 Jun 2012
(MENAFN) The International Monetary Fund (IMF) said in a recent report that Kuwait’s gross domestic product may contract to 6.6 percent this year from 8.25 percent in 2011, Arabian Business reported.
IMF said that higher public spending and higher oil revenues should keep the Gulf state’s economy growing rapidly this year.
It added that the economic outlook for Kuwait in 2012 was “broadly positive”.
Kuwait’s inflation last year stood around 4.75 percent, up from 4 percent in 2010, over higher food costs at 9.25 percent. However inflation may ease slightly due to a decline in global food inflation, IMF said.
IMF warned of future pressures on public finances in the medium term due to rising public sector wage and pension costs and rapid population growth.
In general, the IMF recommended improving the productivity and welfare impact of government spending in the Gulf state, adding that specific attention should be given to upgrading the education system to make it attuned to the needs of the business sector.
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