Key economic indicators show population growth, rising prices, moderate banking activity in Q1 2025

In its latest report, Al-Shall highlighted a number of key economic and monetary indicators drawn from the Quarterly Statistical Bulletin (January–March 2025) published by the Central Bank of Kuwait. These indicators, according to the report, are worth monitoring to understand current economic trends.

The total population of Kuwait reached approximately 5.019 million people by the end of the first quarter of 2025, reflecting a growth of around 31,000 people, or 0.6 percent, compared to 4.988 million at the end of the fourth quarter of 2024, reports Al-Jarida daily.

Consumer prices also rose during this period. The average consumer price index increased by 2.4 percent, reaching 135.7 points (with 2013 as the base year), compared to 132.5 points in the same quarter of the previous year.

Contributing to this rise were higher prices for a range of goods and services, which saw a 5.1 percent increase—from an average of 130.3 to 137.0 points. Food and beverage prices similarly rose by 5.1 percent, from an average of 147.3 to 154.8.

In terms of monetary policy, the weighted average interest rate on deposits declined slightly from 2.632 percent in the fourth quarter of 2024 to 2.602 percent in the first quarter of 2025.

Compared to the same period last year, this represented a drop of 5.6 percent from 2.75 percent. Loan interest rates also edged down, falling from 5.088 percent to 5.05 percent between the fourth quarter of 2024 and the first quarter of 2025—a quarterly decline of 0.7 percent and a 2.6 percent decrease from the 5.18 percent recorded in the first quarter of 2024.

Private sector deposits in local banks rose to approximately KD 39.76 billion by the end of the first quarter of 2025, up from KD 38.99 billion at the end of the previous quarter. This represents a 2.0 percent quarterly increase and a 4.3 percent rise compared to KD 38.10 billion a year earlier.

Local banks’ claims on the private sector also grew, reaching KD 47.95 billion in the first quarter of 2025. This marked a 1.5 percent increase over the KD 47.24 billion recorded in the fourth quarter of 2024, and a 5.2 percent increase compared to KD 45.59 billion in the first quarter of 2024.

These figures, Al-Shall noted, reflect a continued expansion in both the financial and consumer segments of the Kuwaiti economy, amid moderate inflationary pressures and slightly declining interest rates.