Kuwait’s economic growth under threat from COVID-19 and low oil prices

The COVID-19 pandemic has rapidly spread to more than 200 countries till date. In addition to the human toll, the widespread disruption to normal life and business activities due to the COVID-19 pandemic has led to warnings from IMF and other organizations of an upcoming global recession.

Additionally, the GCC countries that rely on oil revenues have been hit harder as oil prices reached record lows due to a combination of falling demand and higher supply when OPEC+ alliance partners failed to reach a consensus on production cuts early in March. The OPEC+ agreed to a deal on 12 April, 2020 for a daily production cut ~10 million barrels but price outlook for oil price remains weak in light of weaker demand.

This adverse economic shock is a combination of a supply shock, demand shock and financial markets shock. It is critical for businesses to understand the implications of this to be better prepared. 

The below links offer further insight into the expected economic impact of COVID-19 and low oil prices on Kuwait and a handy series of health check indicators and immediate actions for businesses to consider.