Kuwait’s deficit is the highest in the Gulf, with 68%

The International Monetary Fund expected that Kuwait would record the highest Gulf deficit in the balance of its non-oil general budget at 68.7 percent in 2021, which is the highest percentage in the Gulf.

In a government study that included a comparison between its forecasts for the economy of Kuwait and other Gulf countries, the fund suggested that the total government debt to the gross domestic product for the current year would reach about 36.6 percent, and that the Gulf average would reach 43 percent.

In a quick reading of the Kuwaiti economy compared to the Gulf countries, as shown by the International Monetary Fund’s expectations, it is likely that Saudi Arabia will record in 2021 the lowest ratio of government debt to GDP, at 34.3 percent, while Bahrain comes in first place as the highest ratio of government debt to GDP. The total amounted to 130.6%, and Oman ranked second with 88.7%, then Qatar with 60.6%, and the UAE with 38.2%.

The fund indicated that Kuwait was likely to lose in 2021 its historical position in the Gulf as the holder of the lowest ratio of government debt to GDP, to the penultimate position if the government went ahead with its borrowing plan.

It is also likely that Kuwait’s budget 2021 will contravene the expectations of international institutions regarding the financial break-even price of oil required for its budget for 2021, as it is expected to reach 65.7 dollar
https://www.alraimedia.com/article/1564044/ :source


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