The recent Cabinet decision to prepare an indicator to face future economic shocks did not come from just an administrative recommendation, but in response to facing the risks of the next stage, Arabic daily Al Rai reported
In view of this the Central Bank of Kuwait (CBK) in its report, published by the Al-Rai daily, highlighted the most prominent items on the “Economic Recovery Indicator from the Effects of the Corona Virus Pandemic” and stressed on the “the necessity of carrying out economic reforms that are overdue.”
The report warned, in the past the motive of these reforms was pursuit of more prosperity, but the fast pace of crises, and in particular the current crisis has made the issue of reforms more like a battle for survival and to build a more sustainable national economy that can withstand and absorb pandemics and shocks.
The report pointed out “the Kuwaiti economy is facing the repercussions of the Corona pandemic, and suffers from chronic structural imbalances that impede its sustainable development and growth.”
The report indicated “the most prominent weaknesses lie in the low degree of diversification of the Kuwaiti economy and the high risk of GDP, in addition to the high degree of food security risks during pandemics.
Kuwait’s economy was “the most contracting among the Gulf countries in 2020, and is expected to be least developed in 2021, according to the expectations of the International Monetary Fund, the report added.
The report revealed in terms of the flexibility of the financial system, Kuwait ranked 60th globally, after Saudi Arabia, which came in 43rd place, and the UAE 33rd. It ranked last in the world (ranked 122 out of 122 countries included in the index).
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