Economy - overview Kuwait is a small and relatively open economy with proved crude oilreserves of about 94 billion barrels - 10% of world reserves. Kuwait has rebuiltits war-ravaged petroleum sector; its crude oil production averaged 2 millionbarrels per day in 1996. Petroleum accounts for nearly half of GDP, 90% ofexport revenues, and 75% of government income. Kuwait lacks water and haspractically no arable land, thus preventing development of agriculture. Withthe exception of fish, it depends almost wholly on food imports. About 75%of potable water must be distilled or imported. Because of its high per capitaincome, comparable with Western European incomes, Kuwait provides its citizenswith extensive health, educational, and retirement benefits. The bulk of thework force is non-Kuwaiti, living at a considerably lower level. Per capitamilitary expenditures are among the highest in the world. The economy improvedmoderately in 1994-96, with the growth in industry and finance. The WorldBank has urged Kuwait to push ahead with privatization, including in the oilindustry, but the government will move slowly on opening the petroleum sector.

GDP purchasing power parity - $32.5 billion (1996 est.)

GDP - real growth rate 3% (1996 est.)

GDP - per capita purchasing power parity - $16,700 (1996 est.)

GDP - composition by sector
agriculture: 0%
industry : 42%
services: 58% (1994)

Inflation rate - consumer price index 4.5% (1996 est.)

Labor force
total: 1 million (1994 est.)
by occupation: industry and agriculture 25%, services 25%, government and social services50% (1994 est.)
note: 72.07% of the population in the 15-64 age group is non-national (July1997 est.)

Unemployment rate 1.8% (official 1996 est.)

Budget
revenues: $10 billion
expenditures : $14 billion, including capital expenditures of $NA (FY96/97 est.)

Industries petroleum, petrochemicals, desalination, food processing, constructionmaterials, salt, construction

Industrial production growth rate 1% (1995 est.)

Electricity - capacity 6.99 million kW (1994)

Electricity - production 21.76 billion kWh (1994)

Electricity - consumption per capita 12,793 kWh (1995 est.)

Agriculture - products practically no crops; extensive fishing in territorial waters

Exports
total value: $13.6 billion (f.o.b., 1996 est.)
commodities : oil
partners: Japan 23%, India 16%, US 12%, Singapore 10%, Netherlands 10% (1995 est.)

Imports
total value: $8.4 billion (f.o.b., 1996 est.)
commodities: food, construction materials, vehicles and parts, clothing
partners : US 24%, UK 14%, France 13%, Japan 10%, Germany 8% (1995 est.)

Debt - external $8 billion (1995 est.)

Economic aid $NA

Currency 1 Kuwaiti dinar (KD) = 1,000 fils

Exchange rates Kuwaiti dinars (KD) per US$1 - 0.3010 (January 1997), 0.2994 (1996),0.2984 (1995), 0.2976 (1994), 0.3017 (1993)

Fiscal year 1 July - 30 June

NOTE: The information regarding Kuwait on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Kuwait Economy 1997 information contained here. All suggestions for corrections of any errors about Kuwait Economy 1997 should be addressed to the CIA.