Despite the increase in the discount rate between March and June last 3 times, consumer spending of citizens and residents in Kuwait rose during the second quarter of this year by 28.51 percent, and a value of 2.338 billion dinars on an annual basis, as it reached the end of last June 10.538 billion dinars, compared to 8.199 billion In the corresponding period of 2021.
Digitally, a local Arabic daily said, this data reflects a significant increase in spending during this period, although it is assumed that successive decisions to raise discount rates are usually a catalyst for reducing the money supply.
On a quarterly basis, the consumer spending of citizens and residents increased in the second quarter by about 631.6 million dinars (+6.4 percent) compared to what was spent between January and March (before the start of raising the discount rate), which amounted to 9.906 billion, according to the Central Bank of Kuwait data on the value of transactions via bank cards inside and outside Kuwait and through websites.
Official data showed that consumer spending during the first half of this year amounted to about 20.444 billion dinars, compared to 15.784 billion spent during the corresponding period of 2021, an increase of 4.66 billion and a growth of 29.5 percent.
By comparing the spending of the second quarter of this year with the corresponding period of 2020, that is, the year of the spread of the Corona pandemic and the accompanying imposition of strict restrictions, spending rose by 5.823 billion dinars, a jump of 123.5%.
And between last June and July, that is, after applying 3 decisions to raise the discount rate, the consumer spending of citizens and residents, through points of sale, cash withdrawals and websites, inside Kuwait amounted to about 10 billion dinars (19.5 billion in the first half), while their spending through these channels outside Kuwait about 480.6 million (957.6 million in the first half).
Inflation in Kuwait last August recorded 4.15 percent, rising by 0.08 percent on a monthly basis due to the rise in prices of all major groups affecting the movement of indices, especially foodstuffs and education.
Domestic inflation rates are the lowest compared to America, where consumer prices reached 8.3 percent in August, 9.1 percent in Europe and 9.9 percent in Britain.
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