Kuwait: Pressure to cut spending


Issue 958 - 14 Nov 2013 | 1 minute read

While Kuwait’s economy remains predominantly strong and stable, there is a growing sense of urgency over the need for economic reform. The International Monetary Fund (IMF) has repeatedly warned that spending is unsustainable, a message that was iterated again following a visit by IMF managing director Christine Lagarde on 10 November. Noting the increased fiscal risks, on the back of a growing reliance on oil revenues and spending rigidities, Lagarde – who met Emir Sheikh Sabah Al-Ahmed Al-Sabah, finance minister Sheikh Salem Abdelaziz Al-Sabah and governor of the Central Bank of Kuwait Mohammed Al-Hashel – said: “To contain these risks from eroding buffers and to save for future generations, it is important to contain current expenditures such as the public sector wage bill and generalised subsidies, and find ways to enhance non-oil revenues.”

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