Kuwait’s GDP Fell By 10.6% In 2023

Kuwait’s gross domestic product (GDP) fell by 10.6 percent in 2023, a decline of approximately KD 5.98 billion, dropping from KD 56.03 billion in 2022 to KD 50.05 billion last year. This decrease was primarily driven by a significant drop in oil prices, which substantially impacted the oil GDP, as well as a decline in the non-oil GDP.

The recent data issued by the Central Administration of Statistics showed that the oil gross domestic product shrank by about 20.1 percent, to a value of KD 6.144 billion, from KD 30.55 billion in 2022 to KD 24.4 billion in 2023.

On the other hand, the non-oil GDP increased by 0.75 percent, rising by about KD 192 million from KD 25.44 billion in 2022 to KD 25.64 billion in 2023.

The GDP data revealed a decline in the fourth quarter of 4.6 percent, amounting to approximately KD 621 million, from KD 13.504 billion in the last quarter of 2022 to KD 12.883 billion in the fourth quarter of 2023.

This decline was driven by a decrease in the value added at current prices of the oil sector by 8.6 percent, following the drop in global oil prices from $88.6 per barrel in the fourth quarter of 2022 to about $83.7 during the same period in 2023. The added value of the non-oil sector also witnessed a decline of 0.7 percent at current prices, reaching KD 6.8 billion.

The GDP at constant prices decline by 3.6 percent, amounting to about KD 1.53 billion, falling from KD 41.982 billion in 2022 to KD 40.452 billion in 2023.

The GDP at constant prices fall by 4.4 percent in the fourth quarter of 2023 to reach a value of KD 10.331 billion compared to the same quarter in 2022.

The added value of the oil sector decreased by 6.4 percent, and the added value of the non-oil sector decreased by 2.3 percent in the fourth quarter of 2023 compared to the same quarter in 2022.

The data revealed that oil and natural gas extraction activities and related services had the largest share of the GDP at current prices, with their contribution reaching 47.2 percent. However, this contribution declined compared to the corresponding quarter of the previous year, which was 49.3 percent.

At constant prices, the contribution rate of oil and natural gas extraction activities and related services was 49.7 percent, compared to 50.8 percent in the same quarter of the previous year. This decline resulted from the decrease in production quantities of crude oil.

The contribution of the manufacturing sector (including petroleum product refining activities) at current and constant prices reached 7.9 percent and 8.5 percent, respectively.

The activity of public administration, defense, and social security had an estimated contribution of 10.7 percent, with the added value at current prices reaching KD 1.384 billion, a rise of 2.9 percent compared to the corresponding quarter of the previous year.

At constant prices, the contribution rate of this activity was 12.5 percent in 2023, while in the corresponding quarter of 2022, the percentage was 11.8 percent.

Financial intermediation activities contributed 8.4 percent at current prices and 8.6 percent at constant prices in the fourth quarter of 2023, compared to 8 percent and 8.1 percent, respectively, in the same quarter of 2022.

During the fourth quarter of 2023, the services sector, which includes vital activities such as education, health and social work, restaurants and hotels, real estate and rental activities, as well as community service activities, contributed 19 percent to the gross domestic product at current prices and 17.8 percent at constant prices.

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