The published economic reports, quoting IMF's International Financial Statistics and EIU, state that Kuwait's real GDP declined by 1% in 2001 as against an increase of 3.9% the previous year. In nominal terms, Kuwait's GDP declined by 8.5% in 2001 to US $ 33.17 billion (KD 10.05 bn). This decline follows double-digit growth recorded in the previous two years, and is attributed to both the decrease in the oil prices and a reduction in the oil output. The EIU forecast expects the Kuwaiti economy to contract by 2% in real terms in 2002 and record a 4.6% growth in real terms in 2003.

The proposed customs union of the GCC countries, in which Kuwait is a member, is reported to be fraught with issues like technical problems, domestic interests and political uncertainty which could hinder the implementation of an effective union until 2005. Unified customs measures and a 5% duty on foreign imports are to be implemented by Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE. The GCC members have failed to reach a satisfactory formula for sharing customs revenue. The finance ministers of the group in June 2002, decided to distribute customs revenues on the basis of the final destination of imports for a period of three years, but the member states are now reported to be looking into better mechanisms based on the size of imports of each country. Other issues are the entry of alcohol and contraband goods which are allowed by some states but banned by others preferential treatment, anti-dumping and protectionist measures. The customs union is an essential step on the way to forming a common Gulf market. Foreign economic blocs, like the European Union, have urged the GCC states to establish a customs union before any free trade deals can be signed with them. The GCC has also approved a time table for monetary union planned for 2005 and a single currency in 2010.

The Ministry of Commerce and Industry is understood have referred to the Cabinet's Fatwa and Legislative Committee a bill to amend the Kuwaiti Manpower Law and increase government subsidy for Kuwaiti products from 10 to 20% in a bid to encourage private industries to hire more Kuwaiti nationals. The law obligates the Central Tenders Committee to accept offers by local manufacturers for products purchased by the government. The proposed amendments to the law further call for increasing government support for local products purchased by the government to help manufacturers increase their profits and hire more Kuwaitis. The law will be referred to the Cabinet and Parliament for approval subsequently.

A decision is expected soon to ban the export of scrap iron and used cardboard from Kuwait. This move is reported to be a result of the demand by the local factories specialised in recycling these materials to cease such exports, considered vital for their industry.

The Chairman of Consumer Protection Volunteering Committee, Faisal Al-Subaie issued a warning against purchasing frozen buffalo meat imported from India as it could be infected by a type of parasite, Sarcosporidiosis. The report published in local newspaper, Arab Times, carried request from Al Subaie to the concerned authorities to carry out necessary tests on samples of this meat and make importers of this meat to return it to the country of origin.