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Monday , February 6 2023

Kuwait’s consumer spending jumps

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KUWAIT CITY, Oct 19: Consumer spending among citizens and expatriates in the country increased by KD2.338 billion or 28.51 percent in the second quarter this year — KD10.538 billion by the end of June compared to KD8.199 billion in the same period last year — even if the discount rate increased thrice from March to June, reports Al-Rai daily. The data showed a significant increase in spending within the above-mentioned period, although it is assumed that successive decisions to raise discount rates are considered a catalyst for reducing money supply.

Consumer spending in the second quarter increased by KD631.6 million (+6.4 percent) compared to spending from January to March (before the increase in discount rate), which amounted to KD9.906 billion according to the Central Bank of Kuwait data on the value of transactions through bank cards in and outside Kuwait and through websites.

In addition, consumer spending during the first half of this year reached KD20.444 billion, compared to KD 15.784 billion within the same period in 2021 — an increase of KD4.66 billion or 29.5 percent. Spending in the second quarter of this year increased by KD5.823 billion or 123.5 percent compared to spending within the same period in 2020 when the Corona pandemic led to the imposition of certain restrictions. In June and July — that is after applying three decisions to raise the discount rate, consumer spending through points of sale, cash withdrawals and websites in the country reached KD10 billion (19.5 billion in the first half); while spending through these channels outside the country reached KD480.6 million (KD957.6 million in the first half).

In August, the inflation recorded was 4.15 percent, rising by 0.08 percent monthly due to increase in the prices of all major groups affecting the movement of indices, especially foodstuff and education. Domestic inflation is the lowest compared to America with 8.3 percent, 9.1 percent in Europe and 9.9 percent in Britain.