Economy - overview:
Kuwait has a geographically small, but wealthy, relatively open economy with crude oil reserves of about 102 billion barrels - more than 6% of world reserves. Kuwaiti officials plan to increase production to 4 million barrels of oil equivalent per day by 2020. Petroleum accounts for over half of GDP, 92% of export revenues, and 90% of government income.
In 2015, Kuwait, for the first time in 15 years, realized a budget deficit after decades of high oil prices; in 2016, the deficit grew to 16.5% of GDP. Kuwaiti authorities announced cuts to fuel subsidies in August 2016, provoking outrage among the public and National Assembly, and the Amir dissolved the government for the seventh time in ten years. In 2017 the deficit was reduced to 7.2% of GDP, and the government raised $8 billion by issuing international bonds. Despite Kuwait’s dependence on oil, the government has cushioned itself against the impact of lower oil prices, by saving annually at least 10% of government revenue in the Fund for Future Generations.
Kuwait has failed to diversify its economy or bolster the private sector, because of a poor business climate, a large public sector that employs about 74% of citizens, and an acrimonious relationship between the National Assembly and the executive branch that has stymied most economic reforms. The Kuwaiti Government has made little progress on its long-term economic development plan first passed in 2010. While the government planned to spend up to $104 billion over four years to diversify the economy, attract more investment, and boost private sector participation in the economy, many of the projects did not materialize because of an uncertain political situation or delays in awarding contracts. To increase non-oil revenues, the Kuwaiti Government in August 2017 approved draft bills supporting a Gulf Cooperation Council-wide value added tax scheduled to take effect in 2018.
GDP (purchasing power parity):
$302.5 billion (2017 est.)
$308.9 billion (2016 est.)
$301.5 billion (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 57
GDP (official exchange rate):
$118.3 billion (2017 est.)
GDP - real growth rate:
-2.1% (2017 est.)
2.5% (2016 est.)
2.1% (2015 est.)
country comparison to the world: 211
GDP - per capita (PPP):
$69,700 (2017 est.)
$73,100 (2016 est.)
$73,400 (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 13
Gross national saving:
24.1% of GDP (2017 est.)
25.1% of GDP (2016 est.)
30.8% of GDP (2015 est.)
country comparison to the world: 59
GDP - composition, by end use:
household consumption: 43%
government consumption: 24.5%
investment in fixed capital: 28%
investment in inventories: 0%
exports of goods and services: 50.2%
imports of goods and services: -45.7% (2017 est.)
GDP - composition, by sector of origin:
agriculture: 0.4%
industry: 58.7%
services: 40.9% (2017 est.)
Agriculture - products:
fish
Industries:
petroleum, petrochemicals, cement, shipbuilding and repair, water desalination, food processing, construction materials
Industrial production growth rate:
-1.5% (2017 est.)
country comparison to the world: 193
Labor force:
2.695 million
note: non-Kuwaitis represent about 60% of the labor force (2017 est.)
country comparison to the world: 113
Labor force - by occupation:
agriculture: NA%
industry: NA%
services: NA%
Unemployment rate:
2.1% (2017 est.)
2.1% (2016 est.)
country comparison to the world: 16
Population below poverty line:
NA%
Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%
Budget:
revenues: $52.87 billion
expenditures: $61.39 billion (2017 est.)
Taxes and other revenues:
44.7% of GDP (2017 est.)
country comparison to the world: 24
Budget surplus (+) or deficit (-):
-7.2% of GDP (2017 est.)
country comparison to the world: 192
Public debt:
26.2% of GDP (2017 est.)
17.3% of GDP (2016 est.)
country comparison to the world: 175
Fiscal year:
1 April - 31 March
Inflation rate (consumer prices):
2.5% (2017 est.)
3.5% (2016 est.)
country comparison to the world: 116
Central bank discount rate:
2.5% (18 December 2017 est.)
1.25% (31 December 2016 est.)
country comparison to the world: 112
Commercial bank prime lending rate:
5.2% (31 December 2017 est.)
4.5% (31 December 2016 est.)
country comparison to the world: 143
Stock of narrow money:
$33.35 billion (31 December 2017 est.)
$31.87 billion (31 December 2016 est.)
country comparison to the world: 61
Stock of broad money:
$121.5 billion (31 December 2017 est.)
$116.9 billion (31 December 2016 est.)
country comparison to the world: 55
Stock of domestic credit:
$102.2 billion (31 December 2017 est.)
$98.92 billion (31 December 2016 est.)
country comparison to the world: 57
Market value of publicly traded shares:
$81.78 billion (31 December 2016 est.)
$83.13 billion (31 December 2015 est.)
$99.77 billion (31 December 2014 est.)
country comparison to the world: 44
Current account balance:
$-714 million (2017 est.)
$-4.997 billion (2016 est.)
country comparison to the world: 115
Exports:
$54.09 billion (2017 est.)
$46.26 billion (2016 est.)
country comparison to the world: 50
Exports - commodities:
oil and refined products, fertilizers
Exports - partners:
South Korea 16.8%, China 14.4%, Japan 9.6%, India 9.2%, US 7.5%, Singapore 5.6% (2016)
Imports:
$29.36 billion (2017 est.)
$30.82 billion (2016 est.)
country comparison to the world: 64
Imports - commodities:
food, construction materials, vehicles and parts, clothing
Imports - partners:
China 14.1%, US 11.9%, UAE 8.3%, Japan 6.5%, Germany 6.2%, India 5.4%, Italy 5%, Saudi Arabia 4.4%, South Korea 4.4% (2016)
Reserves of foreign exchange and gold:
$33.13 billion (31 December 2017 est.)
$31.13 billion (31 December 2016 est.)
country comparison to the world: 49
Debt - external:
$48.91 billion (31 December 2017 est.)
$38.34 billion (31 December 2016 est.)
country comparison to the world: 64
Stock of direct foreign investment - at home:
$13.07 billion (31 December 2017 est.)
$12.62 billion (31 December 2016 est.)
country comparison to the world: 93
Stock of direct foreign investment - abroad:
$79.62 billion (31 December 2017 est.)
$74.13 billion (31 December 2016 est.)
country comparison to the world: 38
Exchange rates:
Kuwaiti dinars (KD) per US dollar -
0.3 (2017 est.)
0.3 (2016 est.)
0.3 (2016 est.)
0.3 (2014 est.)
0.28 (2013 est.)