Kuwait sees rise in consumer spending, totals KD 23.9 billion
Domestic spending grows by 5.3% while spending abroad rises by 11.3% in H1; Online purchases surge amid decline in cash usage
• Total spending by citizens and residents increased by KD 1.2 billion, a 5.6% rise from the same period last year.
• Domestic spending grew by 5.3%, while spending abroad surged by 11.3%.
• Cash usage declined by 6%, though it still accounts for 21.4% of spending.
A recent report from the Central Bank of Kuwait has revealed a notable surge in spending among citizens and residents during the first half of 2024.
The total expenditure climbed to KD 23.9 billion, marking a substantial increase of KD 1.2 billion compared to the same period in 2023.
Domestic spending gains momentum
The data reveals a steady growth in domestic spending, which increased by 5.3% to reach KD 22.5 billion, reports Al-Qabas newspaper.
In contrast,spending abroad witnessed a more significant surge of 11.3%, climbing from KD 1.2 billion in the first half of 2023 to KD 1.3 billion in the corresponding period this year.
Direct purchases and online spending lead the way
Direct purchases at points of sale also experienced growth, rising by 6.6% to reach KD 9.2 billion, constituting 38% of the total expenditure.
Of this amount, KD 8.6 billion was spent domestically, while KD 572 million was directed towards overseas purchases.
The report underscores a notable shift in consumer behavior, with online spending continuing to dominate the market.
It accounted for a substantial 40.1% of all purchases during the first half of the year, totaling KD 9.6 billion. This represents a growth of 12.1% compared to the previous year.
Decline in cash usage
Interestingly, the report highlighted a decline in cash usage. The total value of ATM transactions decreased by 6% to KD 5.1 billion, compared to KD 5.4 billion in the same period of 2023. However, cash still holds a significant share of 21.4% in overall spending.
Online shopping boom
Online shopping within Kuwait itself grew by 11.3%, reaching KD 8.9 billion, an increase of KD 910 million compared to the previous year.
Furthermore, online purchases from foreign websites witnessed an even more substantial growth of 22.9%, climbing from KD 557 million to KD 685 million during the first half of 2024.
