Kuwaitis have reportedly spent huge sums of money on travel during the past year and is considered the highest since the outbreak of the Corona pandemic, since the total spending during the first quarter of last year was 1.13 billion dinars, and in the second quarter 835.8 million dinars, and in the third quarter 1.1 billion dinars and in the fourth quarter it was 935 million dinars.
In terms of spending by tourists inside Kuwait, it saw an increase, as their total spending reached 333 million dinars during 2022, reports Al-Anba daily. In terms of imports, Kuwait imported goods worth 8.6 billion dinars in 2022, compared to 8.4 billion in the previous year.19.3 billion dinars current account surplus during 2022, compared to 10.5 billion dinars in 2021
Kuwaitis have reportedly spent 4 billion dinars on travel in 2022, a jump of 69.5% bringing their total spending to more than 4 billion dinars, compared to an expenditure of 2.36 billion dinars, according to the preliminary data of Kuwait’s balance of payments for the past year issued by the Central Bank of Kuwait.
The expenditure hiked after the Kuwait International Airport became fully operational and the resumption of summer flights, nearly two years after the closure of the Airport and the tightening of travel procedures to prevent the spread of the Corona epidemic.
On the other hand, the Central Bank data showed that expatriates’ remittances during 2022 reached 5.4 billion dinars, declining by about 2.17% compared to 2021, which was 5.5 billion dinars.
The balance of payments showed that commodity exports by Kuwait during the past year witnessed an increase of 49%, or the equivalent of 10 billion dinars, to reach 30.7 billion dinars, of which 28.8 billion dinars were oil exports, compared to commodity exports that amounted to 20.6 billion dinars, of which 19 billion dinars were oil exports.
The significant increase in the value of Kuwait’s merchandise exports came in conjunction with the increase in the value of the country’s oil exports by about 51.1%, or the equivalent of 9.7 billion dinars, as a result of the rise in oil prices, which recorded their highest levels ever during the past year.
In terms of the country’s imports of goods, their value was 8.6 billion dinars during the past year, compared to 8.4 billion dinars during 2021, with an increase of 3.3%, or the equivalent of 280 million dinars.
The preliminary CBK data of the balance of payments for t2022, as well as the amended data for 2021, showed that the current account (which shows a summary of receipts and payments between the local economy and other economies with regard to transactions of goods, services, and income) recorded a surplus during 2022.
This increase is mainly due to the increase in the value of commodity exports by about 10 billion dinars, or by 48.5 percent.
The services account (which reflects the net value of service transactions between residents and non-residents, and includes transportation services, travel, communications, construction, and other services, in addition to government services and goods) recorded a deficit of about 5.1 billion dinars during 2022, compared to a deficit of about 3.7 billion dinars over the previous year (ie an increase of about 1.4 billion dinars, or 38.9%). This increase in the value of the deficit comes mainly from the increase in foreign flows in the travel item during the year 2022.
With regard to the developments of the financial account (which records exchange transactions of financial assets and liabilities between residents and non-residents in the local economy) of Kuwait’s balance of payments, preliminary statistics indicate that there is a net financial outflow (an increase in the net value of investments abroad by residents in the local economy) during 2022.
As a result of developments in the main accounts of the balance, the overall position of Kuwait’s balance of payments during 2022 recorded a surplus of about 1.1 billion dinars, compared to a deficit of about 970.7 million dinars during the previous year.
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