Fundamentals Still Very Strong

May 2007 | Economic Analysis

Economic Activity - Real GDP growth will remain robust throughout the forecast period, led by the oil and gas sectors, although the ample liquidity created by the energy sector will also power expansion in financial services. Ongoing generous government spending will boost consumption, with state-provided salaries, social security and benefits allowing Kuwaitis to spend freely. Gross fixed capital formation should also show good growth this year, mainly on the back of public sector spending. Inflation is one risk to our sanguine outlook, and if it remains high then it could eat into consumer spending. So too could any decision on

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