Kuwait: 2011 Article IV Consultation: Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Kuwait

IMF Staff Country Reports, August 1, 2011

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Canonical URL: Kuwait: 2011 Article IV Consultation: Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Kuwait

Kuwait faced the global financial crisis from a position of strength, owing to expansionary fiscal stance.
The economy is expected to grow steadily over the medium term as Kuwait continues to implement the development plan and global recovery supports demand for oil.
The near-term macroeconomic policy mix is adequate.
The development plan (DP) implementation should be managed carefully.
The financial situation of many investment companies remains precarious.
Significant progress was made in the implementation of the update recommendations, but further steps are warranted.

Medium-term growth: economy expected to grow steadily as DP implementation continues and global recovery supports oil demand.
Near-term policy assessment: macroeconomic policy mix described as adequate.

Fiscal stance: expansionary fiscal stance helped Kuwait face the global financial crisis from a position of strength.
Development plan (DP): implementation should be managed carefully to sustain growth prospects.

Investment companies: the financial situation of many investment companies remains precarious, indicating sectoral vulnerabilities.

Update recommendations: significant progress noted in implementation of the update recommendations.
Further action: further steps are warranted to complete the reform/implementation agenda (specific next steps not detailed in the summary).