KUWAIT: The Kuwait government is eyeing for its port sector’s growth as this will boost growth at the Gulf state’s ports, both though spending on the infrastructure projects and boosting imports of containerised goods.
The dramatic fall in the oil price in the second half of 2014 likely heralds an era of much cheaper oil, which will impact upon Kuwaiti growth – we forecast real GDP growth of 2.9% in 2014 and 2.7% in 2015, from an estimated 3.0% in 2013. Nevertheless, Kuwait has significant fiscal buffers, and could live with OIL PRICES around USD60/bbl for an extended period of time. We currently forecast the price to be within the USD70-75/bbl range over the next several years, and we expect government spending to continue.
Headline Industry Data
* 2015 port of Shuaiba tonnage throughput growth forecast at 10.0% and to average 8.0% to 2019.
* 2015 port of Shuwaikh container throughput forecast to grow 1.96% and to average 1.7% to 2018.
* 2015 total trade growth forecast to grow 2.6% and to average 2.6% to 2019.
