Kuwait’s economic environment is favorable due to the sustained GDP growth rate. The country is the fourth largest global oil producer and world’s fifth in term of proven oil reserves (CIA, 2014). The GDP is estimated at the US $ 200 billion with an annual growth rate of 8 percent. The country has one of the highest GDP rates per capita (43,775). The country has invested in chemical and shipbuilding industry and desalination of water plants and is expanding into tourism and transport sectors (Casey, 2007).
The oil and gas industry accounts for about 60 percent of the total GDP. The current oil production is about 2.8 million per day, but the government has initiated plans of increasing the production to 4 million barrels per day by 2020. The industrial sectors such as mining and quarrying and hydrocarbons manufacturing such as fertilizers have experienced high expansion. The leading economic sectors that contribute to the GDP include oil and gas industry, business services, financial sector, manufacturing, real estate and transport sectors (Mongabay.com, ).
The leading exports are oil, gas and fertilizers to countries such as United States of America, EU, China, Japan and India. The leading imports include food, cars, construction materials and clothing from countries like Saudi Arabia, Germany, China, United Arab Emirates and Germany.
Kuwait has maintained a positive balance of payments due to an impressive inflow of foreign direct investments. The exchange rate is 0.2479 Kuwaiti dinars (KD) per US dollar and balance of payments is approximately 90.78 billion. However, the county has a 6.8 percent public debt and yield of its one-year bonds has declined to about 1.25 percent thus leading to an AA credit rating. Foreign exchange reserves stand at $ 26 billion and inflation rates are at less than 5 percent. Kuwait has an estimated population of 3.2 million people including the non-citizens. The welfare and salaries are high and citizens have favorable attitudes towards work.
Central Intelligence Agency. (2014). ‘Middle East: Kuwait’, (web). Retrieved on 27th may, 2014 from https://www.cia.gov/library/publications/the-world-factbook/geos/ku.html.
Mongabay.com. (2014). ‘Kuwait-ruling family-political system’, (web) Retrieved on 27th May, 2014 from http://www.mongabay.com/history/kuwait/kuwait- ruling_family_kuwaitpolitical_system.html.
The Hofstede Centre. (2014). ‘What about Kuwait’ Retrieved on 27th May, 2014 from http://geert-hofstede.com/kuwait.html.
Casey, Michael. The history of Kuwait. Cheltenham: Ashgate. 2007.
O’Shea, Maria and Spilling, Michael. Kuwait. New York: Routledge. 2010.
UN Data. (2014). ‘Kuwait’, (web). Retrieved on 27th may, 2014 from http://data.un.org/CountryProfile.aspx?crName=KUWAIT.
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