Fitch ratings stated that Kuwait was rated AA with a stable outlook, and the country has an exceptionally strong fiscal position, yet it has achieved smaller fiscal consolidation than other regional countries, based on the new state budget approved at the beginning of August, Reuters informed. Kuwait’s sovereign net foreign assets are the largest of any Fitch-rated country and debt/GDP is among the lowest. Kuwait thus has ample fiscal space which reduces pressure to make rapid fiscal adjustments.
The new budget reflects the government’s difficulty to pursue structural reforms, and follow upon the domestic infrastructure investment plan. According to Arabian Business, the Kuwaiti budget for the fiscal year (FY) ending March 2017 plans a budget deficit excluding oil income and financial investment flows of 69% of non-oil GDP, compared to 87% of non-oil GDP in FY 2015.
In related news, the Kuwaiti crude oil price went up from $2.2 per barrel to $41.14, according to the Kuwait Petroleum Corporation, wrote The Kuwait News Agency (KUNA).