Kuwait Economy

In the Gulf, Kuwait stands out for its oil wealth and dynamic economy. The figures speak of growth marked by booming services and flourishing trade. Every day, life awakens to the sound of the ambitions of a determined people, while access to electricity and the Internet reinforces development. With an active population and promising prospects, Kuwait is building its future on solid foundations, combining tradition and modernity in a quest for prosperity.

Economic Overview

Kuwait has a gross domestic product (GDP) of 149.79 billion euros in 2023, with a GDP per capita of 25,063.42 euros. In annual purchasing power terms, the GDP per capita amounts to 47,059.93 euros. Services account for 58% of GDP between 2018 and 2022, while the agricultural sector contributes only 0.5%. In 2024, a contraction of 1.4% of GDP is expected, followed by a rebound to 3.8% in 2025, according to IMF forecasts.

Oil sector and trade

The oil sector is essential to the Kuwaiti economy, representing 45.8% of GDP, with a contribution of €17.13 billion in 2024. Trade amounted to €125.93 billion in 2022 (exports: €72.78 billion, imports: €33.33 billion), an increase of 36% compared to the previous year. Oil, representing nearly 50% of GDP, plays a key role in economic growth, particularly through increased crude oil exports and expanded refining capacity.

Labor Market Situation

Kuwait has a very low unemployment rate of less than 3%. With a total population of 4,310,108 in 2023 and net migration of 11,999. The labor market remains dynamic. Access to electricity is universal (100%), and internet usage also reaches 100% of the population, fostering an environment conducive to economic development.

Public Finance

The draft budget for the fiscal year 2024-25 projects a deficit of approximately EUR 17.73 billion, representing a reduction of 13.5% compared to the previous year. Total revenues are estimated at €62 billion, of which €54.1 billion will come from oil revenues. Public expenditure is expected to decrease by 6.6% to €81.83 billion, with salaries and subsidies accounting for 79.4% of the budget.

Economic Outlook

Kuwait’s economic outlook is positive, with growth forecast at 3.6% in 2024, followed by 4.1% in 2025. However, public debt, although low at 8.7% of GDP, could increase if tax reforms are implemented. Inflation, estimated at 3.6% in 2023, is expected to decrease slightly to 3.1% in 2024 and 2.8% in 2025, supporting private consumption.

So, as Kuwait navigates its path between challenges and opportunities, we can ask ourselves: to what extent will a country, rich in resources but facing economic and environmental transformations, be able to balance its growth ambitions with the need for sustainable diversification? How can this nation, while preserving its cultural identity, reinvent itself to meet the global challenges of today and tomorrow?