EIU expects Kuwait’s real GDP growth to moderate to 5.4% on average over the outlook period. EIU estimates that a sharp rise international food prices, combined with high regional liquidity on the back of high oil prices and imported inflation driven by the weakness of the dollar, will have pushed average consumer price inflation up to 11.7% in 2008. EIU forecasts a slight strengthening of the dollar and the government's continued commitment to its extensive subsidy system to bring inflation down gradually, to an average of just over 8%.

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