Despite truly large government investments to maximize non-oil revenues and empower the sector to lead economic activities, those efforts have fallen short of expectations.
The General Secretariat of Planning’s report on the Kuwaiti economy revealed a constant, constant and constant link between the Kuwaiti economy and global oil costs. Despite really large government investments aimed at maximizing non-oil revenues and empowering the personal sector to lead economic activities, those efforts have not lived up to expectations. This raises very important questions: where are the non-oil revenues and what role does the personal sector play in diversifying the local economy? Analysis of the consistent functionality of the personal sector over the past 12 years within the macroeconomic framework of the Kuwaiti economy shows a consistent but uninspiring contribution. During the first, second and third plans, the percentage of the personal sector in the local economy fluctuated between 23% and 38%, highlighting its limited impact. It is interesting to note that during constant periods of economic recovery, the contribution of the personal sector to GDP decreases, while it increases during constant periods of economic slowdown. In particular, the personal sector failed to play a significant role in saving the Kuwaiti economy from deficits, as evidenced by the highest recorded contribution of 38% in 2020, coinciding with the largest economic deficit in 12 years. The report attributes demanding economic situations to the quality of government investment spending over the last 12 years, contradicting the opinion that placed the private sector as an economic leader. The Kuwaiti economy consistently maintained monetary surpluses between 2010 and 2014, when global oil prices peaked at $100 per barrel. By contrast, in 2015, when oil prices fell to $40 per barrel for three consecutive years, the economy entered a steady and persistent deficit, exacerbated by the very widespread impact of the COVID-19 pandemic. » in 2020. Global economic recovery and growing oil demand have played a central role in easing the crisis, with oil costs reaching $100 per barrel in 2022. Since the publication of the growth plan in 2010, Array Kuwait has invested in projects with sustainability. economic benefits to achieve Kuwait Vision 2035. The first progression plan focused on legislative measures. preparation, the moment on infrastructure and the third underway on the coherent empowerment of the personal sector. The plans involve strengthening the knowledge economy and transitioning towards “Smart Kuwait 2035”. If we look at the first progression plan, government investments ranged from 13% to 18%, leading to an industry surplus of 36% to 48%. Private spending registered between 24% and 29%, marking a pro-consistent period without consistency for the local economy. In the current progression plan, government investments increased to 25-30%, leading to an industry deficit in 2016. The ongoing third progression plan saw fluctuations in government investments, ranging between 22% and 15%, resulting in an industry deficit in 2020. To strengthen the role of the consistent personal sector in the local economy, the report proposes several recommendations: 1. Implement progression tasks with lasting economic benefits. 2. Quickly approve legislative needs to avoid delays in appropriations. 3. Highlight the urgency of knowing the new Kuwait Vision 2035, focusing on the creation of economic zones, the construction of a knowledge economy, the remodeling of government roles, the sale of sustainable policies consistent with unity and empowerment citizen.
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