Kuwait's GDP Will Grow By 2.6% In 2024, According To The World Bank

Kuwait's GDP is forecast to grow by 2.6% in 2024 and 2.7% in 2025, according to the World Bank.

In comparison with the estimated growth of 0.8% in 2023, this forecast represents a substantial improvement. In the Gulf region, Saudi Arabia is anticipated to achieve an economic growth rate of 4.1% in 2024 and 4.2% in 2025, while the UAE’s economy is expected to grow by 3.7% and 3.8% during the same periods. Al-Anba daily reports that Bahrain, Oman, and Qatar will also experience positive economic growth.

There are several factors contributing to the positive economic outlook in the Gulf and the Middle East, according to the World Bank's "Global Economic Prospects – January 2024" report, including high liquidity rates, attractive stock prices, changes in monetary policy, and positive financial results. Moreover, the formation of a new government in Kuwait is expected to focus on economic development and major projects.

However, the report notes that the conflict in the Middle East has increased uncertainty about regional growth prospects. It is estimated that the Middle East and North Africa could grow at 3.5% in 2024 and 2025 if the conflict does not escalate. Additionally, the report emphasizes the impacts of geopolitical and policy uncertainties, weak tourism activity, and natural disasters and climate change.

Oil-exporting countries could face production limitations if oil prices decline or demand weakens, while oil-importing countries may face challenges if oil prices decline or demand weakens. In the report, negative risks to growth are identified, including the intensification of conflict, indirect effects on neighboring countries, an increase in refugees, and natural disasters.

The economic prospects for the West Bank and Gaza Strip remain uncertain, with an expected contraction of 6% in 2024, following a 3.7% contraction in 2023. While reconstruction efforts in Gaza may contribute to recovery if the intensity of the conflict subsides, ongoing challenges and the destruction of fixed assets pose significant challenges.

In its report, the World Bank emphasizes the importance of monitoring geopolitical developments, spillover effects, and the impact of the conflict on economic development in the region.

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