Kuwait's consumer outlook will show gradual improvement over 2017, with privateconsumption growth forecast to pick up. The economic outlook will slow significantly in 2017 to 0.3%, adownward revision owing to a weaker-than-expected oil sector, however we remain optimistic on themedium-term outlook as growth rebounds by 2018. As a result, we leave our consumer growth projectionunchanged with a positive outlook over 2017-2021.
Kuwait's economic growth will slow significantly over 2017, with our Country Risk team downgrading realGDP forecast to 0.3% from our previous forecast of 2.8%. This is on the back of weaker oil sector, as globaloil prices remain fairly low amid production cuts agreed by OPEC and non OPEC producing states.
However, we hold our real private consumption growth forecasts unchanged at 2.5% in 2017, an improvedoutlook from 1.0% in 2016. BMI forecasts that unemployment will remain low and unchanged, at 2.1%throughout our forecast period to 2021, supporting Kuwait's consumer growth over the coming years. Ourprivate consumption projections for our five-year outlook will average 3.4% between 2017 and 2021.