Kuwait

As the global economic recovery gains pace, Kuwait should consolidate the trends we have highlighted (and predicted) in our last Business Forecast Report: GDP growth will recover, but be driven by the government, with private sector activity still very subdued. Higher oil prices in 2010 - we are forecasting an average OPEC Basket price of US$83/bbl - will allow the government to improve its fiscal position, increasing the leeway for the government to pursue its expansionary spending and maintain political stability. However, the extent of state intervention in the economy will continue to pose risks to perceptions of the business environment.

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