Macroeconomic Forecast Kuwait

The Kuwaiti government's budget surplus grew to KWD4.2bn (US$15.3bn) in the first two months of FY2011/12 (beginning on April 1), up from a surplus of KWD2.4bn in the same period last year. Revenues came to KWD4.8bn in the two month period, while spending amounted to just KWD648mn. The surplus, which represents 11.4% of GDP, is primarily the product of rising receipts from oil exports, which account for 92.0% of total revenues. The FY2011/12 budget, based on oil price assumptions of US$60/barrel, plans a 19% y/y increase in spending (20.2% increase compared to last year's budget) and targets KD3.5bn of investment spending.

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