Economy Kuwait forecasts budget deficit of more than $20bn By Pramod Kumar February 3, 2025, 10:49 AM Reuters/Mohammed Aty The breakeven oil price to bridge the deficit is estimated at $90.5 per barrel, Kuwait's finance ministry said Kuwait’s draft budget for 2025-26 projects a deficit of KD6.3 billion ($20.4 billion), the finance minister has said. Total revenue is forecast to reach KD18.2 billion, while expenditure is set at KD24.5 billion, state-run Kuna news agency reports, citing finance minister Noura Al-Fassam. Non-oil revenues are anticipated to rise 9 percent to KD2.9 billion, she said. However, oil revenues are predicted to fall 5.7 percent from 2024-25 to KD15.3 billion, based on an oil price of $68 a barrel. The breakeven price to bridge the deficit is estimated at $90.5 per barrel, the ministry said. In December 2024, the International Monetary Fund (IMF) said that the Kuwaiti economy is expected to remain in recession through 2024, but is projected to recover over the medium term. Kuwait consumer spending reaches record high Kuwait ready to move on long-awaited mortgage law UAE and Kuwait companies struggling to hire staff Economic activity will rebound in 2025, with a projected growth of 2.6 percent, as oil production curbs begin to unwind. Project activity last year reached its highest value since 2017 at KD2.7 billion, the National Bank of Kuwait (NBK) said. The Gulf nation also expects its tax income to soar by nearly 79 percent annually when all taxes take effect within an IMF-proposed tax reform programme.
