The National Bank of Kuwait (NBK) said Kuwait's economy has shown resilience despite regional conflict and trade disruptions, with key indicators rebounding from earlier lows, although conditions have yet to fully normalise.
NBK said, in its quarterly brief on Thursday, that the non-oil activity improved despite trade disruptions, project delays and uncertainty, supported by government measures, stable household incomes and easing inflation.
The Bank added that the oil production has recovered to three-quarters of pre-conflict levels, while increased Strait shipments and higher oil prices support Kuwait's economy, reinforcing expectations of a limited non-oil downturn. The report explained that the oil prices topped USD 100 per barrel as regional conflict widened and supply disruptions persisted, while Kuwait Export Crude (KEC) exceeded USD 126, reflecting tight supplies of medium-sour crude.
The brief noted that Kuwait, Iraq and non-OPEC UAE recorded the strongest output recovery since March's post-conflict lows, with production exceeding three-quarters of pre-conflict levels, positioning Kuwait to quickly reach its OPEC+ ceiling of 2.68 million bpd once the Strait fully reopens.
It also pointed to the new law allowing Kuwait's government to borrow from the Future Generations Fund under strict safeguards, as financing needs rose amid sharply lower oil revenues following the regional conflict.
It explained that the real estate activity improved in July, with sales reaching KD 395 million, while CPI inflation eased to 2.2 per cent in June from 2.5 per cent in May.
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