Kuwait’s GDP Declines by 9.6% in 2023, Oil Sector Affected by Lower Prices

Kuwait, 30 December, 2024 : Kuwait’s GDP dropped by 9.6% in 2023, totaling 50.8 billion dinars, according to the Central Bureau of Statistics. The decline was primarily driven by a 19.9% drop in the oil sector, which accounted for 47.1% of GDP. The sector’s added value fell to 23.9 billion dinars, impacted by a decrease in global oil prices from $100.9 per barrel in 2022 to $82.5 in 2023.

Despite the oil sector's downturn, the non-oil sector grew by 2.1%, reaching 26.8 billion dinars. Public administration and defense showed strong growth, increasing by 5.4%, while financial activities grew by 1%.

In Q3 2024, GDP fell by 7.5% compared to the previous year, reaching 11.9 billion dinars. The oil sector’s added value declined by 15.6%, reflecting lower oil prices and production. However, the non-oil sector remained resilient, showing a slight 0.1% growth.

Key contributors to the economy in Q3 2024 included manufacturing, public administration, financial brokerage, and the services sector, with real estate, education, and healthcare among the largest sectors. Despite challenges, Kuwait’s non-oil economy continues to grow in key areas.