Kuwait’s economy ends ’18 with high credit ratings

      Published on Wednesday, 2 January , 2019      199 Views     
Kuwait’s economy ends ’18 with high credit ratings


Kuwait’s economy is ending 2018 with a stable future vision and high credit ranking by top international rating agencies.



The rating given by Standard and Poor’s (S and P) was (AA/A-1+), while Moody’s was (Aa2) and Fitch Group gave Kuwait the (AA) rating.

The ratings came after great effort exerted by the Central Bank of Kuwait (CBK) and the Ministry of Finance in adopting monetary policies to achieve economic stability despite regional and international economic crises in the past four years.

Kuwait saw a dramatic drop of 60 percent in outcome in the time period from 2014 until now due to the severe fall of oil prices.

Meanwhile, Kuwait’s monetary policies protected its economy against the impact of stopping the use of easing policies issued after the 2008 financial crisis by the world’s main economies. These economic powers also started raising interest rates on their currencies.

In the same context, the three agencies noted in their reports on Kuwait that the high rating came from the country’s strong local and abroad financial conditions.

They added that the average price of Kuwaiti oil barrel for the state budget is estimated at $56, which is the lowest among oil exporting countries rated by Fitch.

Moreover, S&P said Kuwait’s foreign governmental assets allow it to stabilize the financial field in the face of the drop in oil prices, the lack of diversity in income and the rise of geopolitical tensions in the region.

Kuwait had faced budget deficit in the past years by withdrawing from the Future Generations Fund. The Ministry of Finance has estimated the deficit rate for the fiscal year 2018/2019 at about KD 6.5 billion ($21.5 billion).

The ministry also revealed that the state’s revenues are set to reach about KD 15 billion with spending at about KD 21.5 billion.

The agencies stressed on the need to continue economic reforms and find alternative income sources for the Kuwaiti economy, rather than relying only on oil.



They also called for allowing the private sector to take part in contributing the country’s economy and turn it into the key performer in the field.

Keywords:
Category Business | 2019/01/02 latest update at 11:00 PM
Source : Arab Times | Photocredit : Google
200 Views
Comments Add comment



Related Articles

The editorial staff of Kuwait Media would like to give all of its readers from Gulf and Kuwait and the whole world the opportunity to participate actively in the development of the website! If you have something interesting, fun, scandalous - just something worth to be seen from more people. Capture it and share it in the Kuwait Today with a short text.

Do you have information you want to reach our readers?

Send article/s

You can subscribe to our Facebook, Twitter and Google pages or use our RSS feed channel to always read the most important news about Kuwait, the Gulf and the world.


Armenia new ambassador hands credentials to Emir of Kuwait Emir

Armenia new ambassador hands credentials to Emir of Kuwait

Armenia’s new Ambassador Sarmen Baghdasaryan presented his credentials to the Emir of Kuwait, Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah.…

Saudi King Sends Message to Kuwait Emir Emir

Saudi King Sends Message to Kuwait Emir

Custodian of the Two Holy Mosques King Salman bin Abdulaziz sent on Tuesday an oral message to Kuwaiti…

Emir Of Kuwait Honours Ministry Of Human Resources And Emiratisation Emir

Emir Of Kuwait Honours Ministry Of Human Resources And Emiratisation

Sheikh Sabah Al Ahmad Al Jaber Al Sabah, Emir of Kuwait, honoured the UAE Ministry of Human Resources and Emiratisation for…

Amiri decree issued to convene National Assembly Emir

Amiri decree issued to convene National Assembly

The Amiri Decree No. 284/2018 has been issued for the National Assembly to convene its third regular session…

GULF TV

Technology

Kuwait lifestyle and lifestyle Kuwait news

Lifestyle

Kuwait lifestyle and lifestyle Kuwait news

Culture

Culture news and Kuwait culture news

Sport

Sport news from Kuwait and world sport news

Events

Kuwait Events and Events News

Government

Kuwait government News

Emir

News from the Emir of Kuwait