Cbk Chief Expects ‘positive Growth’ In Kuwait Economy This Year

Kuwait Central Bank (CBK) Governor Dr. Mohammad Al-Hashel expects the country to witness “positive growth” during 2021, but conceded it will “take time” to return to pre-pandemic levels.

“Encouragingly, early monetary, prudential and fiscal policy interventions since the outbreak of the pandemic have ensured that the country’s productive capacity remains broadly unscathed, offering hopes of a swift recovery once the pandemic is brought under control,” he told The Banker in an interview.

In spite of the economy being hampered due to lockdowns and the recent drop in oil prices, particularly in the first half of 2020, the government-led inoculation campaign, currently underway, has “improved public sentiment and brightened economic prospects,” Al-Hashel added.

On the domestic scale, contact-intensive businesses have been “adapting,” he said. This is demonstrated in the rise of online sales, restaurants being an example.

The recovery in oil prices, reaching their highest levels in more than a year, also bodes well for Kuwait’s oil and non-oil gross domestic product growth, he mentioned.

In regards to monetary policy measures taken to face the crisis, CBK carried out a “range of support measures,” namely slashing its policy rate by a cumulative 1.25 percent during March 2020, from 2.75 percent to 1.5 percent.

“That move alone saw our interest rates falling to record lows, which significantly eased funding conditions and the debt servicing burden for borrowers of all types,” he said.

 

SOURCE : TIMES KUWAIT

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