International Monetary Fund. Middle East and Central Asia Dept.
INTERNATIONAL MONETARY FUND
Kuwait is facing 'lower-for-longer' oil prices from a position of strength, owing to large financial buffers, low debt, and a sound financial sector. Nonetheless, lower oil prices have weakened fiscal and external positions and generated large fiscal financing needs. The key challenge for the authorities is to accelerate reforms that underpin fiscal consolidation, while creating incentives for private initiative and investment and fostering job creation for nationals.