
IMF Staff Concludes Staff Visit to Kuwait







December 22, 2022







Stop-of-Mission press releases include statements of IMF team groups that express preliminary results just after a stop by to a state. The sights expressed in this statement are those people of the IMF team and do not necessarily stand for the views of the IMF’s Executive Board. This mission will not result in a Board dialogue.





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- Supported by substantial oil output and costs, Kuwait’s financial recovery is carrying on and fiscal and external balances are improving upon.
- Inflation has been contained so much, supported by financial plan tightening and electrical power and foods subsidies. Financial institutions keep on being perfectly-capitalized and liquid.
- The outlook is topic to uncertainties, which include likely repercussions from the world wide economic slowdown and externally-induced volatility in oil price ranges and output.








Kuwait Town, Kuwait:
An International Monetary Fund (IMF) mission, led by Mr. Yasser Abdih, held
discussions with the Kuwaiti authorities in Kuwait Metropolis in the course of December
11-18, 2022. At the summary of the mission, Mr. Abdih issued the
following statement:
“Kuwait’s economic restoration continues. Solid vaccination attempts and the
authorities’ swift and decisive responses to the COVID-19 crisis have
allowed for the relaxation of all social distancing restrictions and
supported economic recovery
. Over-all authentic GDP advancement is estimated to have rebounded from -8.9
p.c in 2020 to 1.3 % in 2021. It is projected to further
increase to over 8 p.c in 2022, supported by improved oil
generation, substantial oil prices, and sustained enhancement in domestic
demand.
In 2023, advancement is probably to average, reflecting slowing external demand
and oil production cuts less than the OPEC+ arrangement. Direct adverse
spillovers from the Russia’s war in Ukraine have been contained so considerably
provided the limited trade and monetary linkages with equally countries.
“Inflation has been contained, benefiting from monetary tightening and
confined passthrough from increased international food items and energy price ranges supported by
administered selling prices and subsidies. With higher oil costs and output, the
general fiscal and existing account surpluses increased considerably from
last yr.
“With potent financial institution buffers and prudent oversight and proactive checking of
money risks by Central Financial institution of Kuwait, the banking program has weathered
the modern shocks perfectly. Financial institutions proceed to be very well-capitalized and liquid,
financial soundness indicators are wholesome, and private sector credit history
growth continues to be powerful.
“The authorities carry on to put into action measures to boost fiscal income
assortment and expending effectiveness. Attempts are ongoing to encourage electronic
transformation, progress fiscal technological know-how, and make investments in green vitality.
“Nevertheless, the outlook is topic to uncertainties and challenges
surrounding the external setting, together with opportunity impacts of
financial coverage tightening in key state-of-the-art economies and more slowdown
in world wide financial exercise. And volatility in oil costs and generation,
stemming from exterior things which includes the geopolitical atmosphere,
could weigh on exercise and macroeconomic balances. Delays in crucial fiscal
and structural reforms could amplify the risk of procyclical fiscal
policies, and hinder progress toward additional economic diversification and
higher competitiveness.
“The IMF mission crew expresses its appreciation to the authorities for
their hospitality and the candid and effective discussions. We search
forward to continuing our dialogue and shut collaboration.”


IMF Communications Office
MEDIA RELATIONS
Press OFFICER: Mayada Ghazala
Cellular phone: +1 202 623-7100Electronic mail: [email protected]




