Mubasher: The Kuwaiti gross domestic products (GDP) increased by 1.8% year-on-year in the third quarter of 2018, according to a report released on Saturday by the National Bank of Kuwait (NBK).

The growth in the country’s GDP stemmed from a 1.5% increase in oil GDP to 1.5%, the report found.

Toward the end of 2018, a group of OPEC members and independent producers agreed to decrease oil production to improve prices.

The Report said that “Kuwait’s crude output rose to 2.8 million barrels per day in December. But under the new quota targets, the output is due to fall to 2.72 million barrels.”

The global economic situation has been uncertain while many geopolitical conflicts arose, amid more tightening of monetary policies. The FED rose interest rates by 25 points four times in 2018

“The Central Bank of Kuwait opted to keep its main lending rate on hold at 3% to support economic growth, though did increase its repo rates,” NBK remarked.

Meanwhile, the price of Kuwait Export Crude (KEC) went down 10% in December, closing at $52 at the end of the year. The KEC’s price rose to $60 in January.

“Non-oil growth slowed to 2.3% from 4.5% in Q2, but based upon a different methodological approach would be a weaker 1.5%. This leaves the risks to our estimate for non-oil growth for the year as a whole of 2.8% somewhat to the downside,” NBK’s revealed.