Domestic current account surges 127 pct in Q4 2017 – CBK

KUWAIT, Kuwait’s current account achieved a KD 1.108 billion (USD 3.65 billion) surplus in the fourth quarter of 2017, recording a 127.1 pct rise from the previous quarter, Kuwait’s Central Bank (CBK) said on Thursday.

The numbers, which represent receipts and payments between the domestic economy and others in terms of goods, services and income, showed a surplus of KD 488 million (USD 1.6 billion) in the third quarter.

This represents a surge of KD 620 million (USD 2 billion) based on revised estimates.

CBK attributed the improvement to the “appreciation in the surplus of balance on goods and the depreciation in the surplus of primary income.” On the other hand, was a “contraction in the services account deficit and the increase in the secondary income deficit.” It also “reflects a surge in the value of oil exports at a greater rate than that of value of merchandise imports resulting in increasing surplus of the balance on goods to KD 2.291 billion (USD 7.5 billion) as compared to KD 1.748 billion (USD 5.7 billion).

Deficit in the Services Account, which CBK explains is the net value of services transactions between residents and non-residents including transportation, travel, communications and construction, fell by KD 348 million (USD 1.1 billion), or 17.9 pct, to KD 1.596 billion (USD 5.3 billion) compared to KD 1.944 billion (USD 6.4 billion).

The net value of residents’ external assets included in the Financial Account grew at a better pace by KD 3.425 billion (USD 11.3 billion) against a growth of KD 1.432 billion (USD 4.7 billion) during the previous quarter – a surge of KD 1.993 billion (USD 6.5 billion) or 139.1 pct, said the bank.

Furthermore, the overall position of Kuwait’s BOP recorded a surplus of KD 383 million (USD 1.2 billion) during the fourth quarter of 2017 against a deficit of KD 436 million (USD 1.4 billion) during the previous quarter.

The overall position of BOP, in a broad definition, indicates a surplus estimated at KD 1.944 billion (USD 6.4 billion) against a surplus of KD 895 million (USD 2.9 billion) during the previous quarter, said CBK.

Source: Kuwait News Agency