Kuwait’s real GDP projection for 2024 has been revised by the World Bank to 2.8% year-on-year (YoY), up from the 2.6% YoY estimate in January 2024. This adjustment is attributed to the anticipated phasing out of OPEC+ production cuts, as indicated by the Kuwait Financial Centre (Markaz).

According to the International Monetary Fund (IMF), Kuwait’s real GDP is projected to decrease by 1.4% in 2024 due to the continuation of oil production cuts throughout the year. This forecast sets Kuwait apart as the only GCC economy expected to experience a decline in 2024, mentioned Markaz.

In March, Kuwait’s consumer price index (CPI) rose by 3.02%, with the food and beverage (F&B) industry experiencing a notable increase of 5.71%.

According to data from the Ministry of Finance, Kuwait’s project spending during 2023 and 2024 amounted to $1.1 billion, representing a third of the planned capital expenditure of $3.56 billion.

Moreover, project activity had come to a standstill in Q1 2024, with the value of project awards amounting to $327 million, down from $1.8 billion in Q1 2023. This is expected to change throughout the year, with contractors planning for big-ticket projects.

Meanwhile, real estate sales in the country have also seen a decline of 2.3% year-on-year in Q1 2024. Residential and investment segments decreased by 2.8% and 3.9%, respectively, albeit understandable in the high-interest rate environment.

Geopolitical tensions have come into play for Kuwait’s equity market, having declined for a month. Despite this, positive Q1 earnings safeguarded the market decline, noted Markaz.