KUWAIT CITY, April 3: A new forecast by the Business Monitor International (BMI) Research says Kuwait’s real GDP in 2018 will grow following a contraction in 2017, reports arabianbusiness.com
The BMI in its report said the oil production will do little to support the growth in the short-term, given the extension of the OPEC quota until the end of 2018.
With BMI forecasting real GDP growth of 1.9 percent for the year, the non-oil sector is expected to benefit from rising government spending.
From 2019 onwards, with oil production expanding in continuous growth with the non-oil economy, Kuwait’s real GDP is expected to above 3 percent in the medium-term, for the first time since 2012, the report said.
The BMI report notes much of the non-oil growth will largely be driven by the construction of urban area in the north of Kuwait. Among the main proponents of ‘Silk City’ is the eldest son of HH the Amir Sheikh Sabah Ahmad Al-Jaber Al-Sabah, who is Deputy Prime Minister.
The government of Kuwait has said $100 billion project will play an important role in the country’s efforts at diversification, and will include a 1,000-metre skyscraper, a wildlife sanctuary, a new airport, a duty-free shopping zone and media and conference facilities.