Economy Kuwait turns to budget deficit as oil income drops By Pramod Kumar July 25, 2024, 4:47 AM PVRM/Shutterstock Kuwait’s oil production averaged 2.6 million barrels per day in 2023-24 and is forecast to fall to an average of 2.4 million bpd in 2024-25 Kuwait reported a budget deficit of KD1.6 billion ($5.2 billion) in 2023-24 from a surplus of KD6.4 billion the previous year, the finance ministry said. Oil revenues fell to KD21.6 billion, down 19 percent, compared to KD26.7 billion a year ago, the state-run Kuna news agency reported, citing a ministry statement. The current year’s revenue is based on an oil price of $86.36 a barrel. NewsletterGet the Best of AGBI delivered straight to your inbox every week NewsletterGet the Best of AGBI delivered straight to your inbox every week Kuwait’s oil production averaged 2.6 million barrels per day in 2023-24 and is forecast to fall to an average of 2.4 million bpd in 2024-25. However, it will rise slowly through 2027-28 as Opec+ mandated production cuts are tapered in line with increasing global demand. Expenditure rose 13 percent year on year to KD25.2 billion. A breakdown of expenses was not given. This month finance minister Dr. Anwar Al-Mudhaf said that Kuwait expects to report a budget deficit of KD5.6 billion ($18.3 billion) for 2024-2025. The country recorded a deficit of KD33 billion over the last decade, with total deficits expected to reach KD26 billion in the coming four years. The Gulf nation's fiscal year ends on March 31. Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later
