Kuwait 

Kuwait country policy

Policy established 30 March 2010

• No Restrictions
• The country ceiling is 2000 mln euro
• Early warning signal 1500 mln euro
• - of which was used as at 2010-07-31 30 mln euro

Country class: 2

Kuwait country facts

Atradius Dutch State Business Economic Research

Country Report last updated :   February 4rd, 2010   
Country :  KUWAIT 

Political Situation
Stable But No Structural Reforms

Head of state
Emir Sheik Sabah al-Ahmed al-Jabr al-Sabah (since Jan 2006, age over 70); PM Sheik Nasser Mohammed al-Ahmed al-Sabah (had to form his 6th cabinet).

Form of government
Elected National Assembly (= parliament, 50 elected members for 4 year period, women were allowed to vote) plays active role in scrutinizing government. Dominated by tribal representatives who are Al-Sabah’s loyalists. Relatively liberal Gulf State.

Internal Economic Situation
Poor Performance In 2009; Recovery In ‘10

General situation
Oil determines 50% of GDP, almost all government revenue, and 95% of exports. Little real GDP contraction in 2009 (-/- 1.7%), positive contribution all components domestic demand, very negative contribution NFB. Inflation decreases to 5% 2009 (domestic price subsidies, and a weaker USD, lower commodity prices). Little higher inflation in 2010 7%). Still budget surplus of 9% GDP in 2009 (13% in 2010). Real GDP growth 4% in 2010 (lead by domestic demand). KWD depreciated 5% against the USD (main currency in basket to which dinar is pegged) in 2009, expected to be stable against USD in 2010. Hardly external public debt. A 150% GDP foreign asset stock     provides a cushion against volatile nature of oil market. Kuwaiti Stock exchange lost 9% over calendar year 2009.

External Economic Situation
Still Strong Bop In 2009; Good Solvency

Main sources of foreign exchange
Oil-exports. State budget for 90% dependent on oil-export revenues and therefore on oil-prices.

Main foreign markets
Industrial countries: Japan, USA, Netherlands, UK

Main expenses of foreign exchange
Infrastructural reconstruction projects.

Balance of payments 
Dependent on oil price and volume developments, generally strong BOP; 2010 same performance as 2009.