The CEO of the Corum Center for Strategic Studies and Economic Research, Tariq Al-Rifai, said the current war between Russia and Ukraine will significantly put a dent in the Kuwaiti economy because it is certain that inflation will bite hard and recession will result in the decline in purchasing power.
Al-Rifai told a local Arabic daily the crisis will result in an increase in the demand for food and medical supplies due to the high prices that most products in Kuwait will witness, especially as it imports most of its needs from abroad.
Al-Rifai added that the rise in oil prices, reaching nearly $140 per barrel for the first time since 2008, is a positive factor on the local economy, especially the state’s general budget, as the government sector constitutes more than 75% of the state’s total economy, pointing out that the rise in oil prices will contribute in reducing the growth rates of the global economy and the Kuwaiti economy in particular.
He explained that the coming period will witness a sharp rise in food prices, accompanied by a lack of supply of products, as was the situation before the war, which threatens to inflate to record levels, similar to what happened during the beginning of the Corona pandemic.
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