Return of curfew or total lockdown in Kuwait suicidal for existing economy

The stimulus package in Kuwait was the least in the region

  
An aerial view shows Kuwait City and the National Assembly Building (Kuwait Parliament), after the country entered virtual lockdown, as a preventive measure against coronavirus disease (COVID-19) in Kuwait City, Kuwait, March 20, 2020. Picture taken March 20, 2020.

An aerial view shows Kuwait City and the National Assembly Building (Kuwait Parliament), after the country entered virtual lockdown, as a preventive measure against coronavirus disease (COVID-19) in Kuwait City, Kuwait, March 20, 2020. Picture taken March 20, 2020.

REUTERS/Stephanie McGehee

KUWAIT CITY: Economists have warned of consequences on the economy if the government reimposes curfew or total lockdown. Most sectors have not yet recovered from the repercussions of previous decisions, and are still struggling between loan repayment and commitment to this day for survival.

Making a hasty decision that focuses on health issues without taking the economy into consideration will have serious consequences, which will eliminate remaining small and medium enterprises that are struggling in the face of the repercussions of the crisis.

Absence of states’ role in supporting the economy since the crisis have begun and by returning to curfews and total lockdown will kill the existing economy. The stimulus package in Kuwait was the least in the region, and only the support of those bound by chapters five and three was practically implemented, reports Al Qabas.

Through the decision to double employment support for a period of 6 months, while the banks bore the cost of delaying installments to their customers. According to a specialized study, the cost of the Corona crisis in Kuwait is estimated at 12.6 billion dinars within 6 months, while the monthly bill reaches about 650 million dinars as a result of the drop in the gross domestic product.

In addition, another study indicates that 56% of local companies are unable to continue covering fixed costs for an additional two months due to business disruption and partial banning.

Based on these data return of curfew and total lockdown even if the health reasons are justified it will kill the economic activities, the companies that emerged from the repercussions of the previous closure with losses and are still trying to heal their wounds on their own efforts.

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