Friday 30 July 2021

Kuwait 2020 deficit likely to be 40pc of GDP: S&P

DUBAI, July 19, 2020

Lower oil prices, implementation of the April 2020 Opec+ oil production cuts, and the Covid-19 pandemic will drive Kuwait's deficit to widen to almost 40% of GDP in 2020 from an estimated 10% in 2019, said S&P Global Ratings in a new report.

Meanwhile, S&P estimates that the government's main source of budget deficit funding, the General Reserve Fund (GRF), will be insufficient to cover this deficit on its own, it said in its latest RatingsDirect report.

A timely and sufficient policy response to address a potential hard budget constraint in the coming months has yet to emerge, it added.

 S&P Global Ratings has revised its outlook on Kuwait to negative from stable and affirming the 'AA-/A-1+' sovereign ratings, the report said. – TradeArabia News Service


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