Al-Watani forecasts 13% GDP decline for Kuwait in 2026

The National Bank of Kuwait expects the dispute over the Strait of Hormuz to cause Kuwait's GDP to contract by up to 13% in 2026, due to the halt in oil exports and a reduction in production to levels that only meet refinery needs. Average oil production is projected to decline to 1.84 million barrels per day, down from 2.47 million barrels in 2025. Despite the tensions and geopolitical issues, the oil price is expected to remain steady at around $90 per barrel for Brent.

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