Private Consumption Growth Will Buoy Autos Sales

BMI forecasts steady growth in Kuwait's auto market over the medium term against a backdrop of solid economic growth, strong budget surplus and a continued recovery in its banking sector. Although the government appeared to dither in mid-2011 on its spending programme for the 2011/12 financial year, BMI sees Kuwait's real GDP growth reaching 5.4% in 2011. An increase in social spending -- triggered by anti-government protests that gripped the Middle East and North Africa in late 2010 and early 2011 -- should help lift private consumption in the country, filtering through to vehicle sales, which will grow 3.95%, to 124,026 units, in 2011, according to BMI calculations.

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