Kuwait Economy Profile 2008

Economy - overview

Kuwait is a small, rich, relatively open economy with self-reported crude oil reserves of about 104 billion barrels - 10% of world reserves. Petroleum accounts for nearly half of GDP, 95% of export revenues, and 80% of government income. High oil prices in recent years have helped build Kuwait's budget and trade surpluses and foreign reserves. As a result of this positive fiscal situation, the need for economic reforms is less urgent and the government has not earnestly pushed through new initiatives. Despite its vast oil reserves, Kuwait experienced power outages during the summer months in 2006 and 2007 because demand exceeded power generating capacity. Power outages are likely to worsen, given its high population growth rates, unless the government can increase generating capacity. In May 2007 Kuwait changed its currency peg from the US dollar to a basket of currencies in order to curb inflation and to reduce its vulnerability to external shocks.

GDP (purchasing power parity)

$138.6 billion (2007 est.)

GDP (official exchange rate)

$103.4 billion (2007 est.)

GDP - real growth rate

5.6% (2007 est.)

GDP - per capita (PPP)

$55,300 (2007 est.)

GDP - composition by sector

agriculture: 0.4%
industry: 54.7%
services: 44.9% (2007 est.)

Population below poverty line

NA%

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices)

3.9% (2007 est.)

Investment (gross fixed)

20.9% of GDP (2007 est.)

Labor force

1.167 million
note: non-Kuwaitis represent about 80% of the labor force (2007 est.)

Labor force - by occupation

agriculture: NA%
industry: NA%
services: NA%

Unemployment rate

2.2% (2004 est.)

Budget

revenues: $66.92 billion
expenditures: $36.39 billion (2007 est.)

Public debt

7.8% of GDP (2007 est.)

Industries

petroleum, petrochemicals, cement, shipbuilding and repair, water desalination, food processing, construction materials

Industrial production growth rate

0.8% (2007 est.)

Electricity - production

41.11 billion kWh (2005)

Electricity - consumption

36.28 billion kWh (2005)

Electricity - exports

0 kWh (2005)

Electricity - imports

0 kWh (2005)

Oil - production

2.669 million bbl/day (2005 est.)

Oil - consumption

333,000 bbl/day (2005 est.)

Oil - imports

2,611 bbl/day (2004)

Oil - exports

2.2 million bbl/day (2004)

Oil - proved reserves

104 billion bbl (1 January 2006 est.)

Natural gas - production

11.8 billion cu m (2005 est.)

Natural gas - consumption

11.8 billion cu m (2005 est.)

Natural gas - exports

0 cu m (2005 est.)

Natural gas - imports

0 cu m (2005)

Natural gas - proved reserves

1.521 trillion cu m (1 January 2006 est.)

Current Account Balance

$51.49 billion (2007 est.)

Agriculture - products

practically no crops; fish

Exports

$59.57 billion f.o.b. (2007 est.)

Exports - commodities

oil and refined products, fertilizers

Exports - partners

Japan 20.4%, South Korea 16.2%, Taiwan 10.8%, Singapore 9.7%, US 9%, Netherlands 5.3%, China 4.1% (2006)

Imports

$17.74 billion f.o.b. (2007 est.)

Imports - commodities

food, construction materials, vehicles and parts, clothing

Imports - partners

US 14.1%, Germany 7.9%, Japan 7.8%, Saudi Arabia 6.8%, China 5.7%, UK 5.4%, Italy 4.6% (2006)

Reserves of foreign exchange and gold

$19.63 billion (31 December 2007 est.)

Debt - external

$33.61 billion (31 December 2007 est.)

Stock of direct foreign investment - at home

$818 million (2006 est.)

Stock of direct foreign investment - abroad

$13.3 billion (2006 est.)

Market value of publicly traded shares

$128.9 billion (2006)

Economic aid - recipient

$2.6 million (2004)

Currency (code)

Kuwaiti dinar (KD)

Exchange rates

Kuwaiti dinars per US dollar - 0.2844 (2007), 0.29 (2006), 0.292 (2005), 0.2947 (2004), 0.298 (2003)

Fiscal year

1 April - 31 March