Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Kuwait- Crude Oil Output Reaches 3 Mln Barrels Per Day  Join our daily free Newsletter

MENAFN - Arab Times - 25/01/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Arab Times) Latest official data show that Kuwait's GDP grew by 8% in real terms in 2012, above expectations (2013 data is not yet available). However, stronger than expected growth was driven mostly by statistical factors: a change in the base year (from 2000 prices to 2010 prices) which saw GDP re-weighted towards the fast-growing oil sector. This aside, the underlying picture was more or less as expected. The non-oil sector saw steady and unspectacular growth, characterized by high government spending, a weak investment environment and healthier private-sector activity. Non-oil growth should have picked up slightly in 2013



The oil sector (including refining) grew by a significant 12% y/y in 2012. This came on the back of large increases in oil production as Kuwait - along other key OPEC producers - looked to offset output declines in other countries, notably sanctions-affected Iran. Kuwait's crude output rose from under 2.7 million barrels per day to 3.0 in 2012. But in 2013, production was cut by about 2%, and is expected to see further reductions this year as global oil demand growth remains moderate while non-OPEC supplies continue to rise.



The non-oil sector grew at a relatively steady - though still modest - 3%. The star performer in the economy was the manufacturing sector (excluding refining), which saw a huge 24% rise in 2012. (Chart 2.) This sector alone accounted for half of the increase in non-oil GDP. The rise was driven primarily by the chemicals segment - largely petrochemicals





Private sector activity also showed signs of finally picking-up. Combined output of the construction, trade, transport & communication, and finance sectors - in which private sector firms dominate and which account for more than half of all non-oil output - grew by 4% in 2012, following four years of contraction. Although this points to some improvement, progress on economic reforms to boost private investment levels would definitely further enhance the performance of these sectors



On the expenditure side of GDP, growth was driven by government consumption which grew by a large 15% in 2012. (Chart 4.) Government spending on wage and benefit increases have provided considerable support for the economy, specifically for the consumer sector. The latter has been the economy's main bright spot for several years. This has in turn helped private consumption levels, which grew at a steady 7%. Meanwhile, investment spending growth has remained relatively weak at around 3%, reflecting sluggish implementation of government infrastructure schemes



Going forward, we expect growth in the non-oil sector to improve thanks to better project execution and continued strength in the consumer sector. We see non-oil growth rising slightly to 4-5% over the next two years. But since the economy remains heavily skewed towards the oil sector - more so as a result of the re-weighting of GDP - overall growth is likely to be muted because of the expected contraction in oil sector output



In addition to the new 2012 data, revisions were made to the 2011 figures which saw real non-oil growth revised to 4% from the 1% reported earlier. The main source of revision was from the manufacturing sector, in which growth was revised up from -3% to 20%, though the underlying source of this large change is unclear. Despite the rebasing, the shares of each sector within non-oil GDP were essentially unchanged

Overall growth in 2011 was also revised up to 10% from 6% previously, but this was mostly due to the higher weight given to the strong-performing oil sector. The oil sector's contribution to real GDP stood at 59% in 2011, from 42% in the previous weighting. The sector grew by some 15% y/y, accounting for more than 80% of the increase in GDP growth. Parallel revisions on the expenditure side came primarily from stronger net exports.

 


Arab Times




  MENA News Headlines
 Sep 16 2014 - Investcorp acquire USD250m US property propertiesMENAFN
(MENAFN) Bahrain's Investcorp, an alternative investment manager, announced it had acquired a portfolio of office and industrial property assets in three cities in the United States for around USD250 ...

 Sep 16 2014 - Dubai's RTA to invest USD544m in 2 projectsMENAFN
(MENAFN) Dubai's RTA announced it is planning to invest in the construction of two new road projects in the Creek area of the city in order to ease traffic congestion, Arabian Business reported.The ...

 Sep 16 2014 - Egypt reaches USD8.5bn funding goal for Suez Canal projectMENAFN
(MENAFN) Egypt announced it has raised the USD8.5 billion needed to fund its project of expanding the Suez Canal which aims at expanding trade along what is the fastest shipping route between Europe ...

 Sep 16 2014 - GCC Secretary General Receives President of the National Committee for Human Rights in QatarSaudi Press Agency
(MENAFN - Saudi Press Agency)  Secretary General of the Gulf Cooperation Council (GCC) Dr. Abdullatif bin Rashid Al-Zayani met with President of the National Committee for Human Rights in the State ...

 Sep 16 2014 - Egyptian President Meets with Arab Ministers of Labor and Social AffairsSaudi Press Agency
(MENAFN - Saudi Press Agency)   Egyptian President Abdel Fattah al-Sisi met here today with Ministers of Labor and Social Affairs of Arab countries.During the meeting, they discussed the situation of ...

 Sep 16 2014 - Minister of Interior to Sponsor the 17th International Conference and Exhibition for Industrial SecuritySaudi Press Agency
(MENAFN - Saudi Press Agency)  Prince Mohammed bin Naif bin Abdulaziz, Interior Minister who is also President of the Supreme Commission for Industrial Security, will sponsor the 17th International ...

 Sep 16 2014 - RCA's Standing Committee of the International Law President Holds 10th MeetingSaudi Press Agency
(MENAFN - Saudi Press Agency)   Standing Committee for International Humanitarian Law held here today its 10th meeting under the chairmanship of Prince Faisal bin Abdullah bin Abdulaziz, President of ...

 Sep 16 2014 - Yemeni Minister of Petroleum and Minerals Meets with US officialSaudi Press Agency
(MENAFN - Saudi Press Agency)  Yemeni Minister of Petroleum and Minerals Hussein Rasheed met here today with U.S. ambassador to Yemen Mathio Toller.During the meeting, they discussed economic and ...

 Sep 16 2014 - White House Says U.S. Prefers U.K. Remain IntactSaudi Press Agency
(MENAFN - Saudi Press Agency)  The White House said Monday that the United States would respect the outcome of the vote on Scottish independence but would prefer that the United Kingdom remain ...

 Sep 16 2014 - Saudi Arabia elected Chairman of the Membership Committee at the Arab Labor ConferenceSaudi Press Agency
(MENAFN - Saudi Press Agency)  The Kingdom of Saudi Arabia has been elected as Chairman of the Membership Committee at the Arab Labor Conference, currently taking place in Cairo.At the first meeting ...

more...


 






Google

Click to Apply

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help