Kuwait’s economy contracts 4.35%

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In the fourth quarter of 2023, Kuwait’s gross domestic product (GDP) at constant prices experienced a decline of 4.35 percent compared to the same period in the previous year, reports Al-Seyassah daily. The GDP was recorded at 10.33 billion dinars ($33.77 billion), down from 10.80 billion dinars ($35.31 billion) in the fourth quarter of 2022.

This decline was primarily attributed to a 6.4 percent decrease in the added value of the oil sector, influenced by reduced crude oil production quantities. Additionally, the non-oil sector’s added value decreased by 2.3 percent during the same period. The breakdown of contributions to the economy in the fourth quarter of 2023 showed that oil and natural gas extraction activities, along with related services, contributed 49.7 percent. The manufacturing sector, including oil refining activities, contributed 8.5 percent, while public administration, defense,

and the services sector, encompassing education, health, social work, restaurants, hotels, real estate, rental activities, and community services, contributed 17.8 percent.

Every quarter, Kuwait’s economy showed growth, with a GDP increase of 5.52 percent in the third quarter of 2023, amounting to approximately 9.79 billion dinars. At current prices, Kuwait’s GDP in the fourth quarter of 2023 declined by 4.6 percent to 12.88 billion dinars compared to 13.50 billion dinars in the same quarter of 2022. The oil sector’s contribution at current prices decreased by 8.6 percent annually to 6.08 billion dinars, while the non-oil sector’s contribution slightly decreased by 0.7 percent to 6.80 billion dinars. These figures illustrate the economic challenges Kuwait faced in 2023, particularly in its oil sector, amidst global economic fluctuations and production adjustments