WB upgrades Kuwait’s growth forecast to 2.2% amid global slowdown, trade turbulence

In a positive revision, the World Bank has raised its forecast for Kuwait’s economic growth in 2025 to 2.2%, up from its earlier estimate of 1.7% in January.

The Bank projects further improvement, anticipating growth of 2.7% in both 2026 and 2027, supported by a gradual rise in oil production and an expansion of non-oil sectors, according to news agencies.

Meanwhile, the global economic outlook appears bleaker. The Bank lowered its global growth forecast for the current year to 2.3%, down from 2.7% in January, citing escalating trade barriers and geopolitical tensions.

It warned that the 2020s may end up being the weakest decade for global growth in the past 60 years.

For the Middle East and North Africa (MENA) region, the World Bank also trimmed its growth projections for 2025 by 0.7 percentage points to 2.7%, and for 2026 by 0.4 points to 3.7%.
Still, it expects a rebound in the medium term, driven by a steady increase in oil output despite ongoing external headwinds and subdued oil prices.

Specifically, Gulf economies are forecast to grow by 1.6% in 2024, but expected to recover to 3.2% in 2025, 4.5% in 2026, and 4.8% in 2027, fueled by both higher oil production and diversification efforts in non-oil sectors.

Outside the Gulf, oil-exporting nations are likely to face greater pressure due to falling oil prices and weak external demand, further underscoring the importance of economic diversification.

In its “Global Economic Prospects – June 2025” report, the World Bank emphasized that the world economy is on track for one of its slowest periods since the 2008 global financial crisis, excluding the pandemic shock—mainly due to rising protectionism, geopolitical instability, and a slump in global investment.