Kuwait’s economy is expected to slow down in 2023, after performing strongly in 2022, and stabilize over the medium term. The projected economic slowdown is driven by the sluggish global economic activity and OPEC+ cautious production schedule. Softer energy prices will narrow fiscal surpluses and raise deficit concerns in the medium term. Generous subsidies, tight monetary policy, and falling import prices will keep inflation subdued. Downside risks to the outlook include global oil price volatility, a stronger-than-anticipated global economic slowdown, and continued political deadlock over key reforms.