Kuwait Set A Record For Inflation Highest In The Gulf, In Ten Years

A recent report by the firm Capital Economics indicated that Kuwait benefited from the war with Russia in Ukraine, in the context of a report that commented on how the Gulf countries were benefiting from the geopolitical situation in the world, which pushed oil prices to record levels. It also noted that Kuwait increased its oil production during the first quarter which was reinforced during April due to high oil prices.

Despite the lifting of most of the restrictions that had been imposed to limit the spread of the Corona virus, the research company reported that non-oil sectors did not show signs of recovery and growth in the first quarter of this year.

This being said, the report noted that the increase in credit provided to companies in Oman and Bahrain was the highest on an annual basis, due in part to the fact that companies' credit growth slowed during the period compared to the previous year.

Kuwait saw its inflation rate reach a record level of 4.4% on a yearly basis, the highest level among the Gulf countries examined in the report. Up until Corona pandemic in 2019, Kuwait had lower inflation rates than Bahrain and Oman.

According to the report, the growth rate in Saudi Arabia for the first quarter of this year accelerated after rising oil prices hit record levels, a trend seen in most of the Gulf countries.

Capital Economics expects a record rate of economic growth for the Kingdom in 2022, reaching around 10%.

Saudi Arabia recorded its biggest budget surplus since 2012 during the first quarter of the year, according to the report.

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