KUWAIT, Jan 15 (KUNA) - Kuwait's non-oil gross domestic product (GDP) is expected to grow by 2.6 percent this year, a report issued by the National Bank of Kuwait (NBK) predicted on Wednesday, despite a drop of 3.9 percent in third quarter economic growth.
According to preliminary estimates, Kuwait's non-oil GDP had seen a third quarter drop of 2.5 pct on a a year-to-year basis after it recorded a strong performance in the first half of last year, according to the report, which attributed the drop to the contraction seen in key sectors, in addition to a decline of 5.3 percent in oil-based GDP.
On the reasons behind the "optimistic" prognostications on the growth in non-oil GDP, the report cited that plans for more cuts in oil production output, which were due to be implemented this year, have been nixed, in addition to the downward interest rate trajectory, while the government's diligent efforts to bring development projects to fruition was another key factor, it said. The recently-concluded Gulf Cup football tournament in Kuwait, which elicited a huge turnout of visitors from across the Gulf Arab region, coupled with other positive indicators, is expected to be the driving force behind non-oil based economic growth, the NBK report predicted.
On predictions for this year, the scope of growth remains positive, it underlined, pointing to a gradual revival in the national economy driven by a rise in consumer spending and a palpable increase in credit growth, it added. (end) mfs.nam