Kuwaiti non-oil sector to witness ‘upward growth’ in coming years

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New gains cited in refining field of 2 environ fuel projects

KUWAIT CITY, June 9: A recent government economic report referring to the development of the main indicators of the Kuwaiti economy during the period between 2020 and 2022 expected that the Kuwaiti non-oil sector would witness upward growth in the coming years thanks to the new gains in the field of refining of the two environmental fuel projects and Al-Zour refinery, reports Al-Qabas daily.

The special government report pointed to the development of the main indicators of the Kuwaiti economy during 2020-2022 at the level of gross domestic product, as the Kuwaiti economy witnessed a significant recovery at the beginning of 2022 as a result of the rise in international oil prices to their highest levels with the escalation of tension between Russia and Ukraine. This led to an increase in concerns about oil supplies and pushed its price to more than $100 a barrel, indicating that the gradual improvement in the global oil prices began in 2021 coinciding with the OPEC+ alliance agreement to reduce oil production levels as an attempt to save global oil markets after their collapse during the corona pandemic, which in 2020, generated large budget deficits in many countries, including Kuwait.

Value
The report stated that the value of oil exports rose to an all-time high in the first quarter of 2022 compared to at least the past ten years, while oil revenues from the 2021-2022 general budget constituted 84% of the state’s total revenues, while non-revenues amounted to 16%, down from the previous fiscal year 2020/2021 by 38.9%. With regard to consumer spending of citizens and residents in the country by the end of 2021, the report stated that it witnessed a record increase compared to spending levels during 2020, and this came in conjunction with the end of the restrictions imposed to confront the corona pandemic and the opening of the airport, and the return of full operational capacity and economic activities, in addition to postponing citizens’ installments for a full year and residents’ installments for a period of 6 months, which provided great liquidity and boosted their consumer spending during 2021.

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