According to a Reuters article The International Monetary Fund has warned Kuwait about its future economic growth. Despite a strong increase of 7.5% in its GDP in 2004-05, low inflation and a budget surplus of $24bn for the fiscal year just ended, the IMF has urged Kuwait to undertake key structural reforms. A report published on the IMF's web site this week states that Kuwait needs to encourage a wider role for the private sector in its economy.
An Excerpt:
But the IMF said progress on structural reforms remained slow in the Gulf Arab state. "The authorities have adopted some measures to allow for a broader role of the private sector in the economy but ... implementation of the reform agenda has been slower than expected, in part, due to difficulties in reaching a political consensus," said the report, prepared after talks with Kuwaiti officials.
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