Oil-sector contraction drags down Kuwait GDP in 2024

Kuwait’s gross domestic product (GDP) is projected to decline by 3.3 percent in 2024, bringing total GDP down to KD49.1 billion, from KD50.8 billion in 2023, notes the Central Statistical Bureau in its latest report on the economy.

The contraction is largely attributed to falling oil prices, and compliance with oil production cuts—mandated by the Organization of Petroleum Exporting Countries and its non-OPEC allies (OPEC+). The contraction in oil sector revenues significantly impacted the sector’s contribution to the economy, despite continued growth in the non-oil sector.

Economic activity data at current prices shows that non-oil GDP rose by 3.6 percent, to reach KD27.8 billion in 2024, up from KD26.86 billion in 2023.

In contrast, oil GDP declined by 10.9 percent to settle at KD21.3 billion, compared to KD24 billion last year. As a result, the non-oil sector’s share of total GDP increased from 52.86 percent in 2023 to 56.6 percent in 2024, while the oil sector’s share dropped from 47.1 percent to 43.4 percent..

Sector-wise performance at current prices was as follows:

• Oil and gas extraction and related services: KD21.3 billion (43.4% of GDP)
• Public administration, defense, and social security: KD6 billion (12.24%)
• Financial intermediation and insurance: KD4.5 billion (9.24%)
• Manufacturing, real estate, and commercial projects: Each at KD3.9 billion (8%)
• Wholesale and retail trade: KD2.2 billion (4.37%)
• Health and social work: KD2 billion (4.13%)
• Communications: KD1.8 billion (3.6%)
• Hotels and restaurants: KD1.6 billion (3.17%)
• Electricity, gas, and water: KD1.2 billion (2.37%)
• Community and social services: KD1 billion (2.07%)

Aside from current prices, which measures the actual market prices of goods and services, including inflation, during the period they are produced, the country’s GDP also declined in terms of constant prices, which reflect GDP against a base year.

At constant prices, Kuwait’s GDP is expected to decrease by 2.6 percent in 2024 to KD40.3 billion, down from KD41.4 billion in 2023.

The oil sector’s real added value fell by 6.9 percent to KD19.3 billion, while the non-oil sector grew by 1.8 percent reaching KD21 billion. This shift slightly altered the percentage composition of GDP at constant prices, with the oil sector’s share dropping to 47.9 percent in 2024 from 49.9 percent in 2023, while the non-oil sector’s share rose to 52.13 percent from 50.1 percent respectively.

Sector-wise performance and percentage of GDP at constant prices was

• Oil and gas extraction and related services: KD19.3 billion (47.86%)
• Public administration, defense, and social security: KD5.6 billion (14%)
• Financial intermediation and insurance: KD3.6 billion (8.9%)
• Manufacturing: KD3.2 billion (8%)
• Real estate, rental, and commercial projects: KD3.6 billion (7.2%)
• Education: KD2.2 billion (5.34%)
• Electricity, gas, and water: KD1.7 billion (4.22%)
• Wholesale and retail trade: KD1.5 billion (3.6%)
• Communications: KD1.5 billion (3.6%)
• Health and social work: KD1.3 billion (3.27%)