Economy
Kuwait has a GDP (PPP) of US$167.9 billion and a per capita income of US$81,800, making it the 5th richest country in the world, per capita.
According to the 2008 Index of Economic Freedom, Kuwait has the second-most free economy in the Middle East. In March 2007, Kuwait's foreign exchange reserves stood at US$213 billion. The Kuwait Stock Exchange, which has about 200 firms listed, is the second-largest stock exchange in the Arab world with a total market capitalization of US$235 billion. In 2007, the Kuwaiti government posted a budget surplus of US$43 billion.
Kuwait has proven crude oil reserves of 104 billion barrels (15 km³), estimated to be 10% of the world's reserves. According to the Kuwaiti constitution, all natural resources in the country and associated revenues are government property. Being a tax-free country, Kuwait's oil industry accounts for 80% of government revenue. Petroleum and petrochemicals accounts for nearly half of GDP and 95% of export revenues. Increase in oil prices since 2003 resulted in a surge in Kuwait's economy.
Kuwait currently pumps 2.9 million bpd and its full production capacity is a little over 3 million bpd, including oil production in the neutral region that it shares with Saudi Arabia. Kuwait oil production is expected to increase to 4 million bpd by 2020. To realize this production target, Kuwait Petroleum Corporation plans to spend US$51 billion between 2007 to 2012 to upgrade and expand the country's existing refineries. However, the country's economy was badly affected by the global financial crisis of 2008. In 2009, the Central Bank of Kuwait devised a US$5.15 billion stimulus package to help boost the economy.
Other major industries include shipping, construction, cement, water desalination, construction materials and financial services. Kuwait has a well developed banking system and several banks in the country date back to the time before oil was discovered. Founded in 1952, the National Bank of Kuwait is the largest bank in the country and one of the largest in the Arab world. Other prominent financial institutions based in Kuwait include the Gulf Bank of Kuwait and Burgan Bank, which is named after the largest oilfield in the country.
Kuwait's climate limits agricultural development. Consequently, with the exception of fish, it depends almost wholly on food imports. About 75% of potable water must be distilled or imported. The government is keen on decreasing Kuwait's dependence on oil to fuel its economy by transforming it into a regional trading and tourism hub. The planned US$77 billion Madinat al-Hareer (City of Silk) is the largest real estate development project in the Middle East. The Central Bank issues Kuwait's currency, the Kuwaiti dinar. As of May 2012, the dinar is the highest-valued currency unit in the world.
In 2011, estimated exports stood at US$94.47 billion and imports were around US$22.41 billion. Petroleum, petrochemical products, fertilizers and financial services are major export commodities. Kuwait imports a wide range of products ranging from food products and textiles to machinery. Kuwait's most important trading partners are Japan, United States, India, South Korea, Singapore, China, European Union and Saudi Arabia. Japan is the largest customer of Kuwaiti oil followed by India, Singapore and South Korea.
On 5 January 2010, Kuwait has started the construction of Salmiya Park in Salmiya. The Heads said "it would take at least 4 years to complete Salmiya Park"
Read more about this topic: Kuwait
Famous quotes containing the word economy:
“The aim of the laborer should be, not to get his living, to get “a good job,” but to perform well a certain work; and, even in a pecuniary sense, it would be economy for a town to pay its laborers so well that they would not feel that they were working for low ends, as for a livelihood merely, but for scientific, or even moral ends. Do not hire a man who does your work for money, but him who does it for love of it.”
—Henry David Thoreau (1817–1862)
“I favor the policy of economy, not because I wish to save money, but because I wish to save people. The men and women of this country who toil are the ones who bear the cost of the Government. Every dollar that we carelessly waste means that their life will be so much the more meager. Every dollar that we prudently save means that their life will be so much the more abundant. Economy is idealism in its most practical terms.”
—Calvin Coolidge (1872–1933)
“Cities need old buildings so badly it is probably impossible for vigorous streets and districts to grow without them.... for really new ideas of any kind—no matter how ultimately profitable or otherwise successful some of them might prove to be—there is no leeway for such chancy trial, error and experimentation in the high-overhead economy of new construction. Old ideas can sometimes use new buildings. New ideas must use old buildings.”
—Jane Jacobs (b. 1916)