
Kuwait now expects to post its first deficit in two decades by 2017, Finance Minister Anas Al Saleh has reportedly told the Kuwaiti Parliament.
Al Saleh said the recent decline in oil prices, which account for about 90 percent of export revenues, would see Kuwait fall into the red sooner than the International Monetary Fund (IMF)’s 2017-18 prediction, according to Kuwait Times. [Source]
The price of oil is currently under $40 and Kuwait needs it to be at $78 to pay all its bills and stay in the black. So can an expert tell me what it would mean for us if Kuwait ends up in the red? Does everything continue as it is while the government digs into its savings until the oil price goes back again? Or would some of the amenities like free health care stop to help cut down costs? Will this cause inflation?













