Fitch Ratings expected Kuwait's economic growth to improve next year 2022 to reach 5%.
The agency said in a recent report seen by (Namazone) website, today, Thursday, that the Kuwaiti economy will boost its growth this year from 0.9% to increase that percentage in the year Next to 5%.
The agency stated that this recovery, which follows the phase of the repercussions of the Corona epidemic and its aftermath, will be weaker than what most of the Kuwaiti counterpart economies will achieve.
The report indicated that Kuwait may not return to the production levels recorded before the epidemic before 2023, while most Gulf countries will precede it to this level in 2022.
He added that the export growth in Kuwait, which was a major driver of economic growth, will slow down in the coming period, with the stability of oil production, and growth trends in the country will slow significantly in the late decade current unless a major diversification plan is put in place.
The agency also expected the current account surplus to rise from 12% of GDP in 2021 to 13.4% in 2022, and this improvement is mostly thanks to the rise in exports Kuwait contains about 13% of oil, according to dollar estimates.
The agency added, however, that this surplus would recede in the longer term as a result of the stability of oil exports, but indicated that even if this happened, the risks arising from it would be slight if We did not take into account the huge foreign assets in Kuwait.
On the other hand, Fitch believes that the Public Debt Law, which it expected to pass in 2021, may be approved next year.
The agency expects nominal GDP to reach 110.7 billion euros in 2021, rising by 7.5% to 119 billion euros next year.
Fitch also expected that inflation in Kuwait would decline from the level of 2.5% this year to 2% next year 2022.
