KUWAIT: The World Bank expects Kuwait's economy to grow by 2.4 percent this year, driven by the oil sector, followed by a rise of 3.2 percent in 2022 and 2023. According to its review on the wider six-nation Gulf Cooperation Council (GCC) region, it went on to project a 2.2 percent growth this year. This would be backed by a post-pandemic global economic recovery at a predicted 5.6 percent and the return to the global demand on oil, it predicted.
Commenting on the report at a virtual World Bank-hosted seminar, Issam Abousleiman, World Bank GCC Regional Director, said structural reforms and strategic investments, particularly in in digitalization and telecommunications, were needed to further boost economic diversification.
Furthermore, trade and investment analyst Kevin Carey expected Kuwait, Oman and Bahrain's budget deficits to continue between 2021 and 2023, but at lower rates than 2020. These countries' total non-oil output is relatively larger than it was a decade ago, he added, mentioning that GCC countries are obligated to do more in the diversification of their sources of income.
Optimum exploitation
In other news, Kuwait Gulf Oil Company (KGOC) and Aramco Gulf Operations Company (AGOC) have discussed boosting cooperation for optimum exploitation of the crude oil resources in the joint Kuwaiti-Saudi Al-Khafji zone. KGOC said in a statement yesterday the discussions were held between the company's acting CEO Imad Sultan and AGOC's chief manager and head of the operations committee in Al-Khafji, Ali Al-Ajmi.
"The talks dealt with boosting brotherly and professional cooperation between the two sides for serving joint interests and optimal exploitation of the two brotherly countries' wealth (namely crude oil) in Al-Khafji joint operations zone," the statement said.
They touched on joint objectives, perspectives, work development in the region, emerging issues and other topics of common concern. The KGOC side affirmed during the meeting maintaining the common approach and mutual cooperation for achieving strategic goals and optimum usage of the natural resources in the joint zone. The company, a subsidiary of Kuwait Petroleum Corporation, was established in 2002 to take charge of Kuwait's share of the crude oil in the divided zone between Kuwait and Saudi Arabia. - AFP