Slump in Prices Impairs Kuwait’s Oil Revenues

CEIC Macro Watch Global #44 - May 29, 2015 In December 2014 oil revenues flowing into the Kuwaiti government’s fiscal accounts decreased to KWD 1.5 billion (USD 5 billion), a slump of 42.1% compared to December 2013. Oil revenues have been falling, at first unevenly, since July 2014 as oil prices started plummeting. Since then revenues have been dropping by 12.2% on average per month, while in December 2014 the monthly drop accelerated to 14.2%. Due to the heavy dependence of the Kuwaiti economy on its oil reserves, oil revenues are the main component of total government income, averaging 91.5% in 2014. The major cause of the slump in government revenues is oil exports, which saw a rapid decline in value in 2014. In December 2014 quarterly oil exports totalled KWD 5.9 billion, falling by 28.6% on an annual basis and 25.9% compared to Q3-2014. The solution to the slump in revenues might nevertheless be around the corner given the recent partial rebound in oil prices and the further depreciating Kuwaiti Dinar. By Petar Chavdarov in Bulgaria - CEIC Analyst Discuss this post and many other topics in our LinkedIn Group (you must be a LinkedIn member to participate). Request a Free Trial Subscription. Back to Blog
1st June 2015 Slump in Prices Impairs Kuwait’s Oil Revenues