Oil-rich Kuwait's economy probably grew at a faster clip of over 20 percent in nominal terms and about 5 percent in real terms last year, the country's biggest bank said in a report on Monday. National Bank of Kuwait said impetus from higher oil exports, higher government spending, particularly on projects, and a vibrant private sector promise growth in nominal gross domestic product that tops the 16 percent logged in 2003. GDP reached 12.4 billion dinars ($42 billion) in 2003.

"The pace of growth picked up in 2004 on higher oil revenues, increasing government spending and a fairly active private sector," NBK said in the report sent to Reuters.

"Nominal GDP growth could easily top 20 percent compared to 16 percent in 2003, though real growth is likely to be a more moderate 5 percent," the bank added.

Copyright Reuters, 2005