Current account surplus soars
KUWAIT CITY, July 19, (KUNA): The Central Bank of Kuwait (CBK) published Thursday the preliminary data of the Balance of Payments (BoP) of the State of Kuwait for the first quarter of 2018 and the revised data of the fourth quarter of 2017.
The Data show that the Current Account surplus (summing up receipts and payments between domestic economy and other economies in terms of goods, services and income) recorded a surplus of KD 1.6 million during the first quarter of 2018 against a surplus of KD 1.158 million during the previous quarter, representing a hike of KD 521.8 million, ie 45.1 percent.
The upturn in the current account surplus is due to the appreciation in the surplus of balance on goods and the depreciation in the surplus of primary income on one hand, and the increase in both services account deficit and secondary income deficit on the other.
The surplus in the current account mainly reflects a surge in the surplus of the balance on goods (merchandise exports minus merchandise imports) to KD 3.3 million during the first quarter of 2018, compared to KD 2.2 million during the previous quarter. Furthermore, deficit in the Services Account (net value of services transactions between residents and nonresidents, the most important of which are transportation, travel, communications and construction) increased by KD 294.8 million or 17.8 percent to KD 1.9 million during the first quarter of 2018, compared to a deficit of KD 1.6 million during the previous quarter.
As for the developments in the Financial Account (that records transactions involving transfers of financial assets and liabilities between residents and non residents) of the State of Kuwait’s BoP during the first quarter of 2018, the net value of residents’ external assets included in the Financial Account grew at a better pace by KD 1.4 million against a growth of KD 4 million during the previous quarter, i.e. a surge of KD 2.5 million or 63.8 percent.
As a result of the developments in the main BoP accounts, the overall position of Kuwait’s BoP recorded a surplus of KD 471 million during the first quarter of 2018 against a surplus of KD 415 million during the previous quarter.