Economy in Kuwait

Economy in Kuwait

Economy—overview: Kuwait is a small and relatively open economy with proved crude oil reserves of about 94 billion barrels—10% of world reserves. Kuwait has rebuilt its war-ravaged petroleum sector; its crude oil production averaged 2 million barrels per day in 1996. Petroleum accounts for nearly half of GDP 90% of export revenues and 75% of government income. Kuwait lacks water and has practically no arable land thus preventing development of agriculture. With the exception of fish it depends almost wholly on food imports. About 75% of potable water must be distilled or imported. Because of its high per capita income Kuwait provides its citizens with extensive health educational and retirement benefits. The bulk of the work force is non-Kuwaiti living at a considerably lower level. Per capita military expenditures are among the highest in the world. The economy improved moderately in 1994-97 with the growth in industry and finance. The World Bank has urged Kuwait to push ahead with privatization including in the oil industry but the government will move slowly on opening the petroleum sector.

GDP: purchasing power parity—$46.3 billion (1997 est.)

GDP—real growth rate: 1% (1997 est.)

GDP—per capita: purchasing power parity—$22 300 (1997 est.)

GDP—composition by sector:

agriculture: 0%

industry: 53%

services: 47% (1996)

Inflation rate—consumer price index: 3.2% (1996)

Labor force:

total: 1.1 million (1996 est.)

by occupation: government and social services 50% services 40% industry and agriculture 10% (1996 est.)

note: 68% of the population in the 15-64 age group is non-national (July 1998 est.)

Unemployment rate: 1.8% (official 1996 est.)

Budget:

revenues: $10.3 billion

expenditures: $14.5 billion including capital expenditures of $NA (FY97/98 est.)

Industries: petroleum petrochemicals desalination food processing construction materials salt construction

Industrial production growth rate: 1% (1997 est.)

Electricity—capacity: 6.988 million kW (1995)

Electricity—production: 25 billion kWh (1995)

Electricity—consumption per capita: 13 756 kWh (1995)

Agriculture—products: practically no crops; extensive fishing in territorial waters

Exports:

total value: $14.7 billion (f.o.b. 1996)

commodities: oil and refined products fertilizers

partners: Japan 29% US 16% Netherlands 13% Singapore 12% (1996 est.)

Imports:

total value: $7.7 billion (f.o.b. 1996)

commodities : food construction materials vehicles and parts clothing

partners: US 31% UK 14% Japan 13% Germany 8% Italy 7% (1996 est.)

Debt—external: $8 billion (1995 est.)

Economic aid: $NA

Currency: 1 Kuwaiti dinar (KD) = 1 000 fils

Exchange rates: Kuwaiti dinars (KD) per US$1—0.3055 (January 1998) 0.3033 (1997) 0.2994 (1996) 0.2984 (1995) 0.2976 (1994) 0.3017 (1993)