Kuwait: 2019 Article IV Consultation; Press Release; Staff Report; and Statement by the Executive Director for Kuwait

IMF Staff Country Reports, April 2, 2019

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Canonical URL: Kuwait: 2019 Article IV Consultation; Press Release; Staff Report; and Statement by the Executive Director for Kuwait

Growth has strengthened, and fiscal and external positions improved due to higher oil prices.
Increased uncertainty about oil price prospects underscores the need to reduce dependence on oil and increase savings for the future.
The key priority is to build national consensus around equitable and well-sequenced reforms to underpin fiscal consolidation and promote the private sector.
While authorities’ efforts to strengthen the fiscal accounts are welcomed, more ambitious reforms will be needed to secure adequate savings for future generations and reduce financing needs.

Reforming the public wage bill, subsidies, and transfers is recommended to support fiscal consolidation.
Raising non-oil revenue is identified as necessary to reduce dependence on oil receipts.
Enhancing the fiscal policy framework and governance is expected to increase the efficiency of spending on human and physical capital.

Promoting the private sector is central to creating jobs for the large number of nationals joining the labor force over the next decade.
A vibrant private sector is essential to absorb new entrants and reduce fiscal pressures.

Reduce dependence on oil and increase savings for future generations.
Build national consensus for equitable and well-sequenced reforms.
Implement more ambitious measures than those currently undertaken to secure adequate savings and reduce financing needs.
Improve fiscal governance and the fiscal policy framework to enhance spending efficiency.