Kuwait City: Kuwait's non-oil gross domestic product (GDP) is projected to grow by 2.6 percent this year, as predicted by a report from the National Bank of Kuwait (NBK). This forecast comes despite a notable drop of 3.9 percent in economic growth during the third quarter.
According to Kuwait News Agency, preliminary estimates indicate that Kuwait's non-oil GDP experienced a third quarter decline of 2.5 percent on a year-to-year basis. This follows a robust performance in the first half of the previous year. The report attributes the downturn to contractions in key sectors and a significant 5.3 percent decrease in oil-based GDP.
The report outlines reasons for the positive outlook on non-oil GDP growth. Plans for additional cuts in oil production output, originally scheduled for this year, have been canceled. Additionally, a downward trend in interest rates and the government's active pursuit of development projects are seen as critical factors. The recently concluded Gulf Cup football tournament in Kuwait, which drew a large number of visitors from the Gulf Arab region, along with other positive indicators, is anticipated to drive economic growth in the non-oil sector.
Looking ahead, the NBK report maintains an optimistic view on growth, highlighting a gradual recovery in the national economy. This is expected to be supported by increased consumer spending and a noticeable rise in credit growth.