Allo' Expat

 

Kuwait Information Center

Info Center Kuwait

Kuwait General Information
History of Kuwait
Kuwait Culture
Kuwait Cuisine
Kuwait Geography
Kuwait Government
Kuwait Economy
Kuwait Communication
Kuwait Transports
Kuwait Transnational Issues
Kuwait Expatriate’s Handbook
Kuwaitand Foreign Government
Kuwait General Listings
Kuwait Useful Tips
Kuwait Medical Services Info
International Schools in Kuwait
Kuwait Travel & Tourism Info



Kuwait Economy

General

The economy of Kuwait is based almost exclusively on oil; crude oil reserves are estimated at about 94 billion barrels - 10% of world reserves. Petroleum accounts for nearly half of GDP, 90% of export revenues, and 75% of government income By law, 10% of all oil revenues is to be deposited into a special reserve fund to provide for the future when oil revenues are exhausted. Due to the lack of water and arable land Kuwait couldn't develop agriculture as an economic activity. About 75% of potable water must be distilled or imported. During the Iraqi occupation (1990-1991), a great deal of Kuwaiti wealth was taken to Iraq; the Kuwaiti government-in-exile, however, retained control of the country's very substantial overseas assets. In a move to stimulate private investment, the government paid off household debts, increased government salaries and compensated for war damage. This spending plus the costs of the war reduced Kuwait's overseas assets from $100 billion in 1990 to $40 billion in 1992. Limited oil exports began a few months after the liberation.

It was anticipated that pre-invasion oil production levels would be reached by the end of 1992. It was also estimated that it would take two to five years to restore the country's full export capacity. Gradually, oil exports started to get back to normal and higher oil prices helped reduce the budget deficit in 1999. However, with the increase in oil revenues following the restoration of the country's export capacity, the government expanded its welfare role in health, education and municipal services and public utilities.

Economy - overview:

Kuwait is a small, rich, relatively open economy with proved crude oil reserves of about 96 billion barrels - 10% of world reserves. Petroleum accounts for nearly half of GDP, 95% of export revenues, and 80% of government income. Kuwait 's climate limits agricultural development. Consequently, with the exception of fish, it depends almost wholly on food imports. About 75% of potable water must be distilled or imported. Kuwait continues its discussions with foreign oil companies to develop fields in the northern part of the country.

GDP (purchasing power parity):

$48 billion (2004 est.)

GDP - real growth rate:

6.8% (2004 est.)

GDP - per capita:

purchasing power parity - $21,300 (2004 est.)

GDP (official exchange rate):

$4.955 trillion (2005 est.)

GDP - per capita:

purchasing power parity - $30,400 (2005 est.)

GDP - composition by sector:

agriculture: 0.4%
industry: 60.5%
services: 39.1% (2004 est.)

Labor force:

1.42 million
note: non-Kuwaitis represent about 80% of the labor force (2004 est.)

Labor force - by occupation:

agriculture NA, industries NA, services NA

Unemployment rate:

2.2% (2004 est.)

Population below poverty line:

NA

Household income or consumption by percentage share:

lowest 10%: NA
highest 10%: NA

Inflation rate (consumer prices):

2.3% (2004 est.)

Investment (gross fixed):

8% of GDP (2004 est.)

Budget:

revenues: $35.82 billion
expenditures: $19.53 billion, including capital expenditures of NA (2004 est.)

Public debt:

29.6% of GDP (2004 est.)

Agriculture - products:

practically no crops; fish

Industries:

petroleum, petrochemicals, cement, shipbuilding and repair, desalination, food processing, construction materials

Industrial production growth rate:

-5% (2002 est.)

Electricity - production:

32.43 billion kWh (2002)

Electricity - production by source:

fossil fuel: 100%
hydro: 0%
nuclear: 0%
other: 0% (2001) )

Electricity - consumption:

30.16 billion kWh (2002)

Electricity - exports:

0 kWh (2002)

Electricity - imports:

0 kWh (2004)

Oil - production:

2.319 million bbl/day(2004 est.)

Oil - consumption:

293,000 bbl/day (2003 est.)

Oil - exports:

1.97 million bbl/day (2003)

Oil - imports:

NA

Oil - proved reserves:

96.5 billion bbl (2004 est.)

Natural gas - production:

8.7 billion cu m (2002 est.)

Natural gas - consumption:

8.7 billion cu m (2002 est.)

Natural gas - exports:

0 cu m (2002 est.)

Natural gas - imports:

0 cu m (2003 est.)

Natural gas - proved reserves:

1.548 trillion cu m (2004)

Current account balance:

$12.04 billion (2004 est.)

Exports:

$27.42 billion f.o.b. (2004 est.)

Exports - commodities:

oil and refined products, fertilizers

Exports - partners:

Japan 20.5%, South Korea 13.7%, US 12.4%, Singapore 11.3%, Taiwan 9.9% (2004)

Imports:

$11.12 billion f.o.b. (2004 est.)

Imports - commodities:

food, construction materials, vehicles and parts, clothing

Imports - partners:

US 12.9%, Germany 11.9%, Japan 7.9%, UK 5.5%, Saudi Arabia 5.5%, Italy 5%, France 4.5%, China 4.1% (2004)

Reserves of foreign exchange and gold:

$7.333 billion (2004 est.)

Debt - external:

$15.02 billion (2004 est.)

Economic aid - donor:

NA (2001)

Currency (code):

Kuwaiti dinar (KWD)

Exchange rates:

Kuwaiti dinars per US dollar - 0.2947 (2004), 0.298 (2003), 0.3039 (2002), 0.3067 (2001), 0.3068 (2000)

Fiscal year:

1 April - 31 March

 


 

Newsletter Subscription   Advertise with Us