Macroeconomic Forecast Kuwait

May 2008 | Macroeconomic Forecasts

We now see the OPEC Basket averaging US$96.50/bbl this year, with upside risks even to this figure (with the commodity having averaged US$99.04/bbl year-to-date at the time of writing). Against this backdrop, we have revised up our government consumption forecasts, leading to an overall 2008 growth figure of 7.3% (compared with 6.8% previously). However, it is government spending and investment that are the key drivers of growth, with consumer spending and real net exports lagging overall expansion, due to high inflation and a lack of reform momentum.

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