Country Report Kuwait September 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 cabinet.
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.
We forecast a budget surplus of 9.8% of GDP in fiscal year 2009/10 (April 1st-March 31st). As oil prices and oil output pick up in 2010, we expect the budget surplus to widen to almost 14% 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: Arrests and wedding fire bring Kuwait to global attention
The political scene: In focus
The political scene: Government and parliament squabbling continues
Economic policy: New labour law is approved
Economic policy: Expatriate employment rights are strengthened
Economic performance: 2008/09 spending was close to budget despite project delays
Economic performance: Turmoil continues among investment companies
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