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KUWAIT ECONOMY OVERVIEW
Kuwait witnessed a strong growth rate in recent years that has been initially due to high oil prices and increased oil production
levels. Kuwait’s nominal GDP increased by 20.8% to attain KD 29.5 billion in 2006 from KD 24.4 billion in 2005.
Kuwait is a small open economy with established crude oil reserves of approximately 99 billion barrels, ranking as the fourth
largest oil reserve in the world and contributing to 94% of the country’s total revenues. Kuwait’s economic growth persists
due to the high oil prices that reached US$100 per barrel and their effect on other economical sectors such as real estate,
banking and telecommunication. While oil prices remain at high levels it is expected that other indicators will affect Kuwait’s
economic performance. The vital factors of Kuwait’s economic growth are:
Performance of the Domestic Economy
Neira Financial Hub | 31
Source: Central Bank of Kuwait
Nominal GDP billion (KD)
GDP
0
5
10
15
20
25
30
35
2002
11.6
14.3
17.5
24.4
29.5
2003 2004 2005
2006