MENA | Kuwait is struggling to balance a fine fiscal line
In line with trends seen across the GCC, the twin shock of the coronavirus
pandemic and low oil prices has put extra pressure on an already strained
government balance sheet in Kuwait. The budget deficit in 2020 is estimated at almost 29% of GDP, with oil receipts (almost 90% of revenues) plummeting by over 32%.
What you will learn from this report:
- In the short term, the government will struggle to tackle the looming liquidity crisis. For the medium term, a comprehensive set of reforms is needed to tackle fiscal sustainability.
- A political stalemate between government and the elected parliament continues to halt progress on both reform and short-term solutions covering the budget deficit, with delays in fiscal adjustment adding to financing needs and leading to rapid depletion of the General Reserve Fund (GRF).
- Revenues in Kuwait remain heavily dominated by the oil sector, accounting for around 90% of overall revenues in 2019.
BoJ to look through a temporary decline in monetary base
The Bank of Japan (BoJ) left monetary policy unchanged at today's (22nd Sep) meeting, maintaining current short- and long-term interest rates, despite another wave of yen weakening and upward pressures on JGB yields.Find Out More
Global: Worried businesses see almost 50% chance of recession
Businesses continue to downgrade their expectations for the global economy, based on our latest survey of risk perceptions. On average, respondents judge there's a 47% probability of a global recession over the next 12 months.Find Out More