Kuwait's GDP fell 9.6% in 2023

KUWAIT CITY, Dec 28: Figures from the Central Bureau of Statistics revealed that Kuwait’s Gross Domestic Product (GDP) at current prices decreased by 9.6 percent in 2023 compared to 2022, reaching 50.8 billion dinars, reports Al-Seyassah daily. This decline highlights the continued dominance of the oil sector, which remains the cornerstone of Kuwait’s economy. The oil sector accounted for 47.1 percent of GDP, with its added value declining by 19.9 percent year-on-year.

This drop is attributed to a decline in global oil prices from $100.9 per barrel in 2022 to $82.5 in 2023. The sector’s added value amounted to 23.9 billion dinars in 2023. Despite the downturn in the oil sector, the non-oil sector demonstrated resilience, growing by 2.1 percent at current prices, totaling 26.8 billion dinars. Notable contributors to this growth include: Public administration and defense, which grew by 5.4 percent and contributed 11.5 percent of GDP. Financial activities, which grew by 1 percent, contributed 8.6 percent of GDP. For the third quarter of 2024, GDP at current prices fell by 7.5 percent compared to Q3 2023, recording 11.9 billion dinars.

This decline was driven by a 15.6 percent decrease in the added value of the oil sector, reflecting the impact of lower global oil prices ($86.7 per barrel in Q3 2023 to $79.8 per barrel in Q3 2024) and reduced production quantities. However, the non-oil sector showed a slight 0.1 percent growth, contributing 55.6 percent of GDP in Q3 2024. At constant prices, GDP declined by 3.9 percent in Q3 2024 compared to Q3 2023, amounting to 9.7 billion dinars. The oil sector’s added value at constant prices dropped by 5.3 percent, while the non-oil sector saw a 2.5 percent decline. Key contributions to Kuwait’s economic performance in Q3 2024 include:

Manufacturing (refining activities): 8.1 percent at current prices, 7.7 percent at constant prices.

Public administration, defense and social security: 12.6 percent of GDP, contributing 1.5 billion dinars.

Financial brokerage activities: 9.5 percent at current prices, 9 percent at constant prices.

Services sector (education, health, restaurants, real estate): 21.7 percent of GDP in Q3. The figures underscore Kuwait’s continued dependence on the oil sector, though the non-oil economy continues to show growth in key areas.

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