Kuwait's economy expected to contract 3.2% in 2024: IMF

​​​​​​​​​​​​​​By Ovunc Kutlu

ISTANBUL (AA) 0 The Kuwaiti economy is expected to contract 3.2% in 2024 due to an additional oil production cut by the OPEC+ group, the International Monetary Fund (IMF) said Thursday.

The economy, however, is forecast to expand 2.8% next year as oil production cuts get unwound and will grow broadly in line with potential afterward, the IMF said in its Staff Concluding Statement of the 2024 Article IV Mission.

The agency noted that Kuwait's real GDP contracted 3.6% in 2023, as the economic downturn was concentrated in the oil sector, which contracted 4.3% due to an OPEC+ production cut.

The IMF said headline CPI inflation declined to 3.6% in 2023, reflecting lower core and food inflation, adding it moderated further to 2.9% in August due to lower housing and transport inflation.

"The current account surplus moderated to 31.4 percent of GDP in 2023, with a 10.3 percent of GDP reduction in the trade surplus from lower oil prices and production largely offset by a 7.4 percent of GDP increase in the income surplus," it said.