pposite the
Hilton Hotel), Kuwait City (mailing address is P. O. Box 77 Safat, 13001 Safat,
Kuwait City); telephone p965o 242-4151 through 4159

Flag: three equal horizontal bands of green (top), white, and red with a
black trapezoid based on the hoist side

- Economy
Overview: The oil sector dominates the economy. Of the countries in the
Middle East, Kuwait has oil reserves second only to those of Saudi Arabia.
Earnings from hydrocarbons generate over 90% of both export and government
revenues and contribute about 40% to GDP. Most of the nonoil sector is dependent
upon oil-derived government revenues to provide infrastructure development and
to promote limited industrial diversification. The economy is heavily dependent
upon foreign labor--Kuwaitis account for less than 20% of the labor force. The
early years of the Iran-Iraq war pushed Kuwait's GDP well below its 1980 peak;
however, during the period 1986-88, GDP increased each year, rising to 5% in
1988.

GDP: $20.5 billion, per capita $10,500; real growth rate 5.0% (1988)

Inflation rate (consumer prices): 1.5% (1988)

Unemployment rate: 0%

Budget: revenues $7.1 billion; expenditures $10.5 billion, including
capital expenditures of $3.1 billion (FY88)

Exports: $7.1 billion (f.o.b., 1988); commodities--oil 90%;
partners--Japan, Italy, FRG, US

Imports: $5.2 billion (f.o.b., 1988); commodities--food,
construction material, vehicles and parts, clothing; partners--Japan,
US, FRG, UK

External debt: $7.2 billion (December 1989 est.)

Industrial production: growth rate 3% (1988)

Electricity: 8,287,000 kW capacity; 21,500 million kWh produced,
10,710 kWh per capita (1989)

Industries: petroleum, petrochemicals, desalination, food processing,
salt, construction

Agriculture: virtually none; dependent on imports for food; about 75% of
potable water must be distilled or imported

Aid: donor--pledged $18.3 billion in bilateral aid to less developed
countries (1979-89)

Currency: Kuwaiti dinar (plural--dinars);
1 Kuwaiti dinar (KD) = 1,000 fils

Exchange rates: Kuwaiti dinars (KD) per US$1--0.2915 (January 1990),
0.2937 (1989), 0.2790 (1988), 0.2786 (1987), 0.2919 (1986), 0.3007 (1985)

Fiscal year: 1 July-30 June

- Communications
Highways: 3,000 km total; 2,500 km bituminous; 500 km earth, sand, light
gravel

Pipelines: crude oil, 877 km; refined products, 40 km; natural gas, 165 km

Ports: Ash Shuwaykh, Ash Shuaybah, Mina al Ahmadi

Merchant