KUWAIT CITY, July 14: The report issued by the General Secretariat of the Supreme Council for Planning and Development highlights several key economic indicators and factors influencing Kuwait’s economy over the past five years, reports Al-Qabas daily. The report says local inflation rates in Kuwait remained relatively low compared to global levels due to strong social safety nets and government subsidies on many commodities while the economic growth in terms of GDP growth rate experienced significant fluctuations.

In 2019 it was 0.9 percent, in 2020: -21.8 percent (largely due to economic challenges); in 2021: 29.9 percent (beginning of economic recovery), in 2022: 30.9 percent (peak growth) and in 2023: 11.1 percent (decline from peak). Local demand for goods and services saw fluctuations – in 2019 it rose by 0.3 percent, 2020: contracted by 3.4 percent; 2021-2022: showed growth, peaking at 8.5 percent and 2023: decreased to 3.2 percent.

The average interest rates in Kuwait increased in 2022 and 2023 due to monetary policy adjustments by the Central Bank -- 2022: increased by 2.35 percent; 2023: increased further by 4.13 percent and previously decreased in 2020 and 2021. Kuwait’s crude oil production varied – in 2019: 2,683 thousand barrels per day; 2020-2021 saw production reductions; in 2022 production increased to 2.706 million barrels per day and in 2023 production reduced to 2.58 million barrels per day. Government policies -- Measures since 2019 aimed at reducing inflation included forming committees for food security, enhancing the pharmaceutical system, and implementing price monitoring to combat price hikes. Import dependence -- Despite government efforts, prices of non-subsidized goods were impacted by global inflation due to Kuwait’s reliance on imported consumer goods. Price increases were notable from 2019 to 2022, with a slowdown in 2023.

In Global Economic Context the global inflation rates also fluctuated as follows: in 2019 it was 2.2 percent; in 2020: 1.9 percent; in 2021: 3.5 percent; in 2022: 8.3 percent (peak) and in 2023: 6.4 percent (decreased from peak) The report underscores the interconnectedness of Kuwait’s economy with global economic trends and the importance of robust government policies in managing economic stability and inflationary pressures.