Latest official data show that Kuwait’s GDP grew by eight per cent in real terms in 2012, above expectations (2013 data is not yet available). However, stronger than expected growth was driven mostly by statistical factors: a change in the base year (from 2000 prices to 2010 prices) which saw GDP re-weighted towards the fast-growing oil sector. This aside, the underlying picture was more or less as expected. The non-oil sector saw steady and unspectacular growth, characterized by high government spending, a weak investment environment and healthier private-sector activity. Non-oil growth should have picked up slightly in 2013.
Sunday 26, January 2014 by Robin Amlôt