Source: BMI stability at the moment depends on oil revenues, which are not assured over the long term. challenges For the coming Decade Kuwait shares many of its structural political features and sources of risk with its Gulf neighbours: � PopulationImbalances: Around two thirds of the popula- tion are foreign nationals, and many of these expatriates are working on short-term contracts, meaning the whole population is subject to volatility in times of economic trouble. ...Source: BMI stability at the moment depends on oil revenues, which are not assured over the long term. challenges For the coming Decade Kuwait shares many of its structural political features and sources of risk with its Gulf neighbours: � PopulationImbalances: Around two thirds of the popula- tion are foreign nationals, and many of these expatriates are working on short-term contracts, meaning the whole population is subject to volatility in times of economic trouble. Swings in both directions will affect house purchase and rental prices, and domestic demand in general. ...On the other hand, if an attack were suc- cessful, and Iran s economy continued to deteriorate, then the pressure could ease, strengthening the government s position. -- Business Monitor International Ltd www political outlook
...- Business Monitor International Ltd www kuwait Q- ---- core Views We expect the Kuwaiti economy to perform relatively well over ----, and retain our forecast for real GDP growth of -.- , from an esti- mated -.- in ----. After a long period of stagnation, the Kuwaiti investment outlook appears to be improving, while the prospects for consumption remain bright. ...We forecast average consumer price inflation for Kuwait of -.- and -.- for ---- and ---- respectively, up from -.- in ----. While we expect a slight fall in Kuwaiti food inflation over the near term on the back of lower global prices, a tight supply picture in the real estate market will fuel housing inflation over the coming quarters, in a trend seen across the GCC. Key risks to outlook As ever, given the economy s heavy dependence on oil, any sus- tained downturn in global energy prices would prove disastrous. ...Any improvement on this front would pose upside risks to our growth forecasts, as well as downside risks to our budget surplus projec- tions. - Business Monitor International Ltd www executive summary
...
