Country Report Kuwait July 2009

Summary

The emir will remain the ultimate political authority. Disputes between parliament and the government are likely to persist in 2009-10 because changes to parliament have not been reflected in the make-up of the new government.
Kuwaiti foreign policy will remain founded on a long-standing strategic alliance with the US. Efforts at Gulf Co-operation Council integration will also continue.
Following a further upward revision to our oil price forecast, we now expect a budget surplus of 8.5% of GDP in fiscal year 2009/10. The surplus is forecast to widen to 12% of GDP in 2010/11.
Owing to greater OPEC quota compliance and weakening demand for Kuwaiti exports, we forecast that real GDP??

Highlights
Outlook for 2009-10: Domestic politics
Outlook for 2009-10: International relations
Outlook for 2009-10: Policy trends
Outlook for 2009-10: Fiscal policy
Outlook for 2009-10: Monetary policy
Outlook for 2009-10: International assumptions
Outlook for 2009-10: Economic growth
Outlook for 2009-10: Inflation
Outlook for 2009-10: Exchange rates
Outlook for 2009-10: External sector
Outlook for 2009-10: Forecast summary
The political scene: Government and parliament relations are still strained
The political scene: Tensions flare over Iraqi MPs' comments on reparations
Economic policy: Debate on passing economic stimulus bill is delayed
Economic policy: In focus
Economic performance: The oil ministry is confronting multiple industry dilemmas
Economic performance: Investment companies continue to struggle
Data and charts: Annual data and forecast
Data and charts: Quarterly data
Data and charts: Monthly data
Data and charts: Annual trends charts
Data and charts: Monthly trends charts
Data and charts: Comparative economic indicators
Basic data
Political structure