A cursory glance at Kuwait’s macroeconomic figures suggest a positive economic growth story. The country’s real gross domestic product (GDP) grew by 5.7% in 2011 – a significant improvement on the 3.4% growth achieved in 2010 – according to the International Monetary Fund (IMF). In 2011, the country also boasted the highest budget surplus in the Middle East and an estimated current account balance of $57.2bn. Meanwhile, its external debt fell to about 32.5% of GDP, from 40.9% in 2010.
With a surplus of Kd5.3bn ($18.98bn) – 21% of GDP – the 2010/11 fiscal year (which ended in March 2011) marked Kuwait's 12th year of posting a surplus, having accumulated more than $140bn in budget surpluses in the past 11 years. However, these impressive headline figures mask a much more complicated and disappointing economic reality on the ground.
