There are indications that it is likely the expenditures of families in Kuwait will increase during the current period tied to the financial grant given to retirees approved recently by law, and deposited by the Public Institution for Social Security in the accounts beneficiaries (retirees).
The financial grant of 3,000 dinars each has already been by PIFSS into the accounts of about 213,000 retirees and with it the banking transactions have jumped from about 160,000 per day in all banks to about 210,000, meaning a growth of more than 30%, while the cash withdrawn from ATMs increased from 16 to 25 million dinars, an increase of approximately 64 percent compared to the corresponding day of the previous year, as well as compared to the rates of the days preceding the deposit of the financial grant.
The same data draws attention to the fact that retail points of sale also recorded a significant increase in the levels of withdrawals executed through these devices, but at rates lower than “cash”, while the generous disbursement is likely to continue in the near future, as it is a local practice that each surplus contributes to savings, family budgets and grants by raising the level of purchases and consumer spending in general.
Perhaps what enhances expectations of spending growth until the end of the year is that the local market has experienced after the improvement in the epidemiological situation in the country, and the end of the ban period that was imposed at the beginning of the Corona pandemic, where it was noticed as soon as restrictions were lifted, the pace of retail purchases increased at large rates, driven by the money that was saved during the ban period, which, according to estimates of some studies, created surpluses equivalent to two months’ salary for the majority, bearing in mind that this budget is usually spent on travel, purchases, and restaurants.
Fitch Solutions recently revised its forecast for the growth of real household spending in Kuwait this year, increasing from 5.7 to 6.2 percent, to reach 11.8 billion dinars, compared to 10.7 billion in 2021.
