Kuwait’s GDP declines in Q3 2023, non-oil sector shows resilience
Data released by the Central Administration of Statistics indicates a notable decline in Kuwait’s gross domestic product (GDP) during the third quarter of 2023, dropping by approximately 11.7% compared to the same period in the previous year.
The GDP value at current prices reached 12.7 billion dinars in Q3 2023, down from 14.3 billion dinars in Q3 2022. This contraction is primarily attributed to a 22.1% decrease in the value added of the oil sector, driven by a decline in global oil prices, reports Al-Qabas daily.
Conversely, the non-oil sector witnessed growth of 2.4% at current prices in Q3 2023 compared to the same quarter of 2022, reaching a value of 6.2 billion dinars. However, the GDP at constant prices declined by 3.7% in Q3 2023, totaling 9.8 billion dinars, with the oil sector’s added value decreasing by 9% while the non-oil sector’s added value grew by 2.8%.
Examining specific economic activities, oil and natural gas extraction activities and related services remained dominant in contributing to GDP at current prices, although their relative share decreased from 57.6% to 50.8% compared to the previous year. The manufacturing sector, including petroleum product refining activities, contributed 7.3% and 7.6% at current and constant prices, respectively.
Public administration, defense, and social security activities saw a 2.4% increase, contributing 10.6% to GDP at current prices. Financial brokerage activities contributed 8.5% at current prices and 9.2% at constant prices. Meanwhile, the services sector, encompassing various vital activities such as education, health, real estate, and community service, contributed 20.0% to quarterly GDP at current prices and 19.6% at constant prices.
Despite challenges in the oil sector, the resilience shown by the non-oil sector underscores its importance in mitigating economic downturns and diversifying Kuwait’s economy. Continued efforts to strengthen the non-oil sector and enhance economic diversification remain crucial for sustained growth and resilience against external shocks.
