Dubai: Kuwait's oil gross domestic product (GDP) is projected to increase by 0.9 per cent quarter-on-quarter (QoQ) in the fourth quarter of 2024 and by 4 per cent year-on-year (YoY) in 2025, assuming full restoration of its oil production, according to a report by the National Bank of Kuwait (NBK).
In June, OPEC+ announced voluntary production cuts for its members in 2024, with Kuwait's allocation set at 135,000 barrels per day. These cuts will gradually be phased out over a one-year period starting from October.
OPEC+ is an organisation enabling the co-operation of leading oil-producing and oil-dependent countries to collectively influence the global oil market and maximize profit.
NBK noted that OPEC+ has left room to adjust these production increases based on market conditions, indicating the possibility of pausing or reversing the supply gains.
During Q4 2023, Kuwait's oil GDP had declined by 6.4 per cent YoY, with the country adhering to its OPEC+ commitments by maintaining crude oil production at 2.55 million barrels per day.
In 2023, Kuwait's oil GDP contracted by 4.3 per cent, a significant shift from the strong growth observed in 2022 when Kuwait and other OPEC members had ramped up production in response to tighter oil market conditions.
Conversely, the non-oil sector GDP in Kuwait saw a YoY contraction of -2.3 per cent in Q4 2023, marking the fifth consecutive quarter of decline.
