Press Releases

Press Release: Key Developments in the Balance of Payments of the State of Kuwait for the Second Quarter of 2018

08.10.18 The Central Bank of Kuwait (CBK) published today the preliminary data of the Balance of Payments (BOP) of the State of Kuwait for the second quarter of 2018, and the revised data of the first quarter of 2018. The aforesaid data show that the Current Account (summing up receipts and payments between domestic economy and other economies in terms of goods, services and income) recorded a surplus of KD 2,878 million during the second quarter of 2018 against a surplus of KD 1,855 million during the previous quarter, representing a hike of KD 1,023.1 million, i.e. 55.2%. The upturn in the Current Account surplus is due to the appreciation in the surpluses of both Balance on Goods and Primary Income on one hand, and the increase in the deficit of Secondary Income, as well as the decrease in the deficit of Services Account 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 3,789 million during the second quarter of 2018, compared to KD 3,356 million during the previous quarter. Furthermore, the deficit in the Services Account (net value of services transactions between residents and non residents, the most important of which are transportation, travel, communications and construction) decreased by KD 219.3 million or 10.0% to KD 1,969 million during the second quarter of 2018, compared to a deficit of KD 2,188 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 second quarter of 2018, the net value of residents’ external assets included in the Financial Account grew at a better pace by KD 3,491 million against a growth of KD 890 million during the previous quarter, i.e. a surge of KD 2,601.5 million.

As a result of the developments in the main BOP accounts, the overall position of Kuwait’s BOP recorded a surplus of KD 961 million during the second quarter of 2018 against a surplus of KD 467 million during the previous quarter.

From a broader perspective, the overall position of the State of Kuwait BOP that takes into consideration the change in the net value of external assets of some institutions listed under “General Government” item, the overall position of BOP, in a broad definition, indicates a surplus estimated at KD 2,368 million during the second quarter of 2018 against a surplus of KD 935 million during the previous quarter.


Summary of the Balance of Payments of the State of Kuwait

(KD Million)

Item                        

2018 Q1

2018 Q2

Current Account, of which:

1,855

2,878

           - Balance on Goods        

3,356

3,789

  Capital Account         

-41

-17

  Financial Account     

-890

-3,491

  Overall Balance         

467

961

                                                                                                                                                  Source: Central Bank of Kuwait