By Majd Othman
Kuwait: The Kuwait Economic Association (KES) hosted a seminar on Wednesday in collaboration with the Faculty of Business Administration of Kuwait University and the World Bank Country Office of Kuwait to discuss the World Bank Economic Report of GCC countries (Spring 2022). Issam Abousleiman, World Bank Country Director of the GCC countries in the Middle East and North Africa, published a World Bank report entitled “Achieving Climate Change-Related Pledges” in the COVID from 2021 to early 2022. 19 Recovery from a pandemic.
“In this report, the steps needed to move towards a new low-carbon growth model, such as energy subsidies review and fiscal consolidation, and the private sector at the forefront of the new growth model,” he said.
Abousleiman said that international pressure from war and economic sanctions in Ukraine has led to oil and gas in additional efforts to support the energy security of major importers, especially GCC countries with such significant reserves. Like Saudi Arabia and the United Arab Emirates, which said it could lead to additional investment in GCC countries to expand gas production, “this is the variety needed for the non-hydrogen economies of GCC countries. It could lead to a real dilemma because it could delay the transformation. “
The World Bank report predicts that Kuwait will reach a growth rate of 5.7% by the first half of this year, with growth down 3.6% in 2023 and down to 2.5% in 2024. .. Real GDP, on the other hand, is expected to grow by an average of 3% in 2023/2024 due to increased oil exports and credit growth.
The report predicts that the consumer price index (inflation) will reach 3.6% this year, but will return to 2.8% next year and 2.3% in 2024. Oil production will increase by 8.6%, he said. This year OPEC + raised its production quota and increased the production capacity of the Al-Zour refinery.
The report predicts a large surplus in Kuwait’s primary balance of 13% of GDP this year, which is part of the $ 7.7 billion delinquency charge by the Treasury, other ministries and agencies. Settlement is possible. The report noted that it would be more appropriate for Kuwait to take advantage of public financial conditions to diversify its economy from oil and push for structural reforms.
In his opening remarks, Kuwait’s Chairman of the Economic Association, Khaled Al-Mutairi, used an independent and professional approach to overcome the challenges facing Kuwait’s national economy in a positive way and in a meaningful way. He said that society will continue to play an active role. Dialogue with experts and people interested in the economy.
He pointed out that: “GCC countries have been able to overcome the crisis by relaxing immunization campaigns and pandemic-related restrictions after a sharp decline in economic growth due to the COVID-19 pandemic in 2020. Economic recovery in 2021 in countries. “
He added: “The public budget deficit has witnessed a remarkable improvement. GCC countries are expected to achieve growth in economic activity in 2022.” Mohammad Zainal, Dean of the Faculty of Business Administration at the University of Kuwait, said a government agency. He said current developments such as challenges and new work programs imposed on the private sector and the private sector must be addressed at the regional, local and international levels.
“Kuwait University’s Faculty of Business Administration is effective and essential in supporting reform and economic development programs by working with the World Bank to provide solutions and alternatives to overcome economic and social challenges. Continued pursuit of new roles, experience and research, “he said.
