Kuwait’s GDP expected to decline this year

Economists believe Kuwait’s economy will contract this year due to a decrease in oil production linked to the OPEC deal, according to a new survey.

In the survey conducted by Bloomberg News, economists on average said Kuwaiti gross domestic product would decline 0.5 per cent in 2017. This compared to an average prediction of 0.7 per cent growth in a previous survey.

The average growth forecast for the country next year also declined to 2.3 per cent from 2.4 per cent.

In other findings, the average consumer price index forecast for 2017 stood at 3.2 per cent from 3.3 per cent previously but remained the same for 2018 at 3.5 per cent.

Kuwait is reducing its oil production to 2.7 million barrels per day this year in line with the OPEC target.

The country’s oil minister said on Thursday that compliance with the OPEC deal was “very good” and above 100 per cent for September, improving on performance last month.

Read: Kuwait says OPEC could meet in March on extending oil cut pact

He added that discussions to extend the deal beyond March 2018 were not taking place.

Some economists are also forecasting the Saudi economy may contract this year due to the OPEC production cuts.

Read: Saudi to get $21.3bn boost from expat fees but may face 2017 recession – BoA