Kuwait’s non-oil GDP hits two-year high of KD 7.03 billion

• Kuwait’s GDP at current prices decreased by 4% on a quarterly basis in the first quarter of 2024, falling to KD 12.37 billion from KD 12.88 billion in the fourth quarter of 2023.

• Data from 2022 to 2024 show that Kuwait’s GDP remained steady on a quarterly basis, averaging KD 12.53 billion, down from KD 14.1 billion in 2022.

• The Kuwaiti economy experienced an annual growth rate of 4.8%, increasing from KD 33.08 billion in 2010 to KD 50.3 billion in 2023.

Kuwait’s gross domestic product (GDP) data for the first quarter of 2024 (Q1) reveal a 3.4% increase in the non-oil sector’s contribution, rising to KD 230 million and reaching a total of about KD 7.03 billion. This marks the highest level in two years, representing 57% of the country’s GDP at current prices, according to Al Anbanewspaper.

According to Kuwait’s GDP data published by the Central Bureau of Statistics, the country’s GDP at current prices decreased by 4% on a quarterly basis in the first quarter of 2024, falling to KD 12.37 billion from KD 12.88 billion in the fourth quarter of 2023.

This decline was due to a 12.2% drop in the oil sector’s contribution, amounting to KD 744 million, as a result of falling crude prices and production, in line with Kuwait’s commitment to the ‘OPEC+’ alliance. The oil sector’s contribution to the quarterly GDP at current prices was KD 5.34 billion, representing 43%.

The data from 2022 to 2024 show Kuwait’s GDP remained consistent on a quarterly basis, averaging KD 12.53 billion per quarter, compared to an average of KD 14.1 billion per quarter in 2022.

Revised figures based on estimated annual data for 2022 and 2023 reveal a 25.8% increase in Kuwaiti GDP at current prices in 2022, equivalent to an increase of KD 11.55 billion, reaching a record high of KD 56.33 billion ($183 billion).

This notable increase resulted from a significant 60% rise in the oil sector, adding KD 11.24 billion to reach KD 29.88 billion. The average oil price in 2022 was about $100 per barrel, compared to $70 per barrel in 2021. Additionally, the non-oil sector grew by 1.2%, increasing by KD 310 million to reach KD 26.45 billion.

The GDP at fixed prices, which adjusts for inflation, increased by 5.86% in 2022, equivalent to KD 2.3 billion, reaching approximately KD 41.98 billion.

In 2023, with oil prices averaging $83 per barrel—a 17% decrease—the GDP at current prices fell by 10.7%, a drop of KD 6.04 billion, to KD 50.29 billion ($163 billion). This decline was due to a 20.3% decrease in the oil sector, which fell by KD 6.07 billion to KD 23.82 billion (47.4% of GDP), while the non-oil sector increased by 0.1%, reaching KD 26.47 billion (52.6% of GDP).

When adjusting for inflation, the GDP at constant prices (base year 2010) contracted by 3.64% in 2023, a decrease of KD 1.53 billion, resulting in KD 40.45 billion.

When analyzing GDP data at current prices from 2010 to 2023, it is evident that the Kuwaiti economy experienced an annual growth rate of 4.8%, increasing from KD 33.08 billion in 2010 to KD 50.3 billion in 2023. During this period, the oil sector saw an average annual growth rate of 7.8%, while the non-oil sector grew at an average annual rate of 4.8%.

The GDP at constant prices recorded an average annual growth rate of 1.64% from 2010 to 2023, with the oil sector growing at 1.13% and the non-oil sector at 2.38%. This indicates the significant role of the non-oil sectors in driving the growth of the Kuwaiti economy over the past thirteen years.