Kuwaiti economy "strong and stable" - finance minister

By Mahmoud Bushehri KUWAIT, Oct 7 (KUNA) -- Deputy Prime Minister and Finance Minister Sheikh Salem Abdulaziz Al-Sabah said that the economic situation of Kuwait is predominantly "strong and stable" - a point supported by the positive surpluses achieved in the internal and external budgets.
The strength of the economy is illustrated in the recording of an actual surplus of KD 12.7 billion (USD 45 billion) in the public budget for the FY 2012/13 which ended in March, representing 24.7 percent of the nominal GDP for 2012.
The current account balance in 2012 also achieved a surplus of around KD 22.
2 billion (USD 78.5 billion) representing 43.2 percent of the nominal GDP.
These financial surpluses, in spite of being a source of strength for the national economy, are fundamentally linked to the performance of international oil markets, which thus illustrates the importance of enhancing economic activity on a sustainable basis, he said.
He identified the most prominent challenges that face the economy, during this point in time, as being structural imbalances affecting the state public budget, the dynamics of the labour market and the limited private sector role in economic activity.
"These imbalances are partially or wholly linked to the exchanged relationship with the size and nature of the role played by the government in economic activity, which has resulted in the oversized growth of its administrative sector and the complication of procedures - thus hindering sustainable growth," he added.
He expressed the need to address these challenges through uniting efforts on the local stage to move on with development plans set forth by HH the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah.
The minister stated furthermore that he is set to head the Kuwaiti delegation at the 2013 Annual Meetings of the Boards of Governors of the International Monetary Fund (IMF) and the World Bank in Washington DC between October 11 and 13.
Sheikh Salem will be delivering a speech on behalf of Arab central bank governors which will address economic and social challenges facing the Arab region in light of its ongoing political crises.
The speech will pinpoint the state of uncertainty which has accompanied the developments in these countries, and efforts needed to increase the contributions of international financial institutions in order to achieve economic and social stability through enhancing prospects for global cooperation and economic integration. (end) mjb.sd KUNA 071912 Oct 13NNNN