Kuwait returns to growth
The Kuwaiti economy is expected to enjoy a stronger recovery than previously expected. In its October 2018 world economic outlook, the International Monetary Fund said the economy would enjoy a more robust recovery than had been hoped for after the recession in 2017 brought on by the collapse in oil prices. The economy likely grew by 2.3% in 2018, the IMF said, a signi cant upgrade from the 1.3% it had pencilled in in April 2018.. Annual GDP growth rose to 1.8% in the third quarter of 2018 from 0.6% in the previous three months period, according to o cial gures. The spike was driven by a turnaround oil GDP growth to 1.5% after a contraction of 2.1% in the previous quarter. Non-oil growth slowed to 2.3% from 4.%. Standard & Poor’s, the ratings agency, lowered its 2019 GDP growth forecast 1.0% from 3.2% given the oil production cuts announced by Opec. The World Bank also gave a slightly less upbeat outlook in its October 2018 economic outlook. Growth is expected to rebound to 3.1% in 2019 rather than the 3.5% it expected in April. Moody’s forecasts non-oil GDP growth of 3.5% in 2018 and 4.0% in 2019 driven by growing gov- ernment spending.. Kuwait pumped 2.80m barrels per day (bpd) in October 2018, up from 2.78m bpd in September, a cut in production of 20,000 bpd rather than the 85,000 agreed quota. Kuwait had earlier stuck to its agreement to cut production by 131,000 bpd, which it enforced with an extra 5% of contraction compared with its baseline in March 2018.