– Kuwait’s Balance of Payments (BoP) saw a surplus of KD 1,599.5 million in the Current Account during Q1 2021, said the Central Bank of Kuwait (CBK) on Monday.
The preliminary data, which also includes the revised data of Q4 2020, revealed the surplus (that sums up receipts and payments on transactions between the domestic economy and other economies in terms of goods, services and income) against a surplus of KD 3,648.1 million during the previous quarter, i.e. a drop by 56.2 percent equivalent to KD 2,048.6 million.
According to a CBK press release, this downturn is attributable to the decline in the total value of receipts on the credit side of the Current Account by KD 2,287.4 million or 25.9 percent compared with the previous quarter, and the decrease in the total value of payments on the debit side of the Current Account by KD 238.8 million or 4.6 percent compared with the previous quarter.
Furthermore, the aforementioned data indicate an increase in the surplus of the Balance on Goods by KD 808.6 million or 70.7 percent to reach KD 1,952.2 million during Q1 2021 against KD 1,143.7 million during the previous quarter. This upsurge is mainly attributable to the higher crude oil exports.
The Services Account (net value of services transactions between residents and non-residents that include transportation, travel, communications, construction, other services as well as government services and goods) recorded a decrease in the deficit by KD 47.4 million or 5.6 percent to reach KD 794.3 million during Q1 2021 against a deficit of KD 841.7 million during the previous quarter.
Preliminary data of the Financial Account (recording transfers of financial assets and liabilities between residents and non-residents) indicate net capital outflows (growth in residents’ net investments abroad) of KD 2,745.6 million during Q1 2021 against net capital outflows of KD 3,358.7 million during the previous quarter.
As a result, the overall position of Kuwait’s BoP recorded a deficit of KD 1,197.5 million during Q1 2021 against a deficit of KD 0.9 million during the previous quarter.
From a broader perspective, and taking into consideration the change in the net value of external assets of some institutions listed under ‘General Government’ and changes in CBK’s reserve assets, the BoP’s overall position, in a broad definition, indicates a surplus of KD 4,961.0 million during Q1 2021 against a surplus of KD 993.5 million during the previous quarter.
Source: Kuwait News Agency