Government spending is also expected to increase in the coming years amid plans to boost credit, employment and wages. It is expected to remain low with 6.9% in 2023 and 6.5% in 2024. Despite the international context created by the COVID-19 pandemic the ratios decrease to only 8.7% in 2021 and 7.1% in 2022. Kuwait’s public finances were relatively healthy in 2020, with a debt-to-GDP ratio of 11.7% that year. Government spending, employment and credit growth are expected to support economic activity in the short term nonetheless, this will depend on stable oil prices and higher oil output. It was expected to slow down to 2.6% in 20, subject to the post-pandemic global economic recovery (IMF, January 2023). Due to the COVID-19 pandemic, it plummeted to -8.9% in 2020 but came back to positive territory at 1.3% in 2021 before reaching over 8.7% in 2022.

Kuwait's economic growth was negative at -0.6% in 2019 as lower oil output and weaker oil prices offset the steady expansion of the non-oil sector. Kuwait is a very rich country and has developed a welfare state for its nationals, who enjoy a very high per capita income.

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

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