MACRO ECONOMIC ANALYSIS

Macro Economic Analysis of Kuwait



Macro Economic Analysis of Kuwait

Overview of Kuwait's economy

Despite the small size of the State of Kuwait have huge oil reserves; that place it in a huge list of countries that have oil reserves. The state was able to raise the level of GDP over the past years and; it rose steadily, despite the passage of several economic crises. The following table shows an overview of the economy, the Kuwaiti (Rogers, 2011).

Gross Domestic Product (GDP)

Kuwait is one of the richest countries in the world is also the economic strength of Kuwait is very high compared to countries of the world. The reasons for the economic power to the high per capita GDP, which is a key measure used to assess the ability and willingness to pay. Over the past years since two thousand and four -2008 per capita GDP in Kuwait in terms of purchasing power of nearly 38 thousand U.S. dollars, according to the International Monetary Fund. Kuwait and was ranked eleventh in the world and is similar to the rate in the Netherlands and Hong Kong (Nettleton, 1979).

Consumer Spending

Unfortunately, Kuwait is one of countries that suffer from excessive consumer spending at the expense of savings and investment. Most people spend all their wages on consumption of goods and services in a way exaggerated. I am thinking here of exaggerating exaggerate the quantity and quality, in terms of quantity, it is the people buy large quantities of goods than their needs as well as life-change from what they have personal items quickly, e.g. replacement of cars and mobile phones, computers and electrical appliances.

The Reason for This Excessive Consumption Pattern

Many reasons, but the most important consumer culture of the society, which vary greatly from one country to another, for example, might be a product of certain luxury in a society but are considered necessary in another community. Also, plays a large and rapid evolution in technology, media and the proliferation of modern shopping malls where there is much entertainment and major role in motivating consumer behavior (Daniels, 1971). Finance additional spending is usually through three sources. First, borrowing from family, and friends and this are a large common in Kuwait; and many neighboring countries as a result of strong social fabric which is based on community members to help each other in the event of any financial hardship. Second, the reliance on credit cards those allow the holder to purchase amounts of Aimlkha to the ceiling of the credit card. It can be seen the size dependence on these cards to finance consumer spending through the numbers listed in the table (1).

Rate of Unemployment

The unemployment rate in Kuwait to its lowest level in early 2009 to reach 4.5%; and the decline was a result of the government providing more job opportunities for national employment in the private sector through the National Employment Support Act of 2000. Occupy most of the Kuwaiti labor force by 262,691 public sector employees, and nearly 78% of the total ...