Press Releases
Key Developments in the Balance of Payments of the State of Kuwait for the Year 2014
The Central Bank of Kuwait (CBK) publishes today the preliminary data of the Balance of Payments (BOP) of the State of Kuwait for 2014 and the revised estimates of 2013 in coherence with the guidelines of the sixth edition of BOP Manual issued by the International Monetary Fund in 2009 (BPM6). Preliminary data of the State of Kuwait’s BOP of 2014 show continuing yet declining surpluses in the external balances. The Current Account (reflecting the outcome of transactions between domestic economy and other economies encompassing goods, services, Primary Income “investment income”, and Secondary Income “current transfers”) realized a surplus of KD 15140 million (30.4% of nominal 2013 GDP) during 2014 against KD 20210 million during 2013 (40.5% of nominal 2013 GDP). The decline in the current account surplus reflects mainly the decrease in the value of oil exports which in addition to the rise in merchandise imports led to a drop in the surplus of the Balance on Goods (merchandise exports minus merchandise imports on f.o.b. basis) to reach KD 22027 million during 2014 compared to KD 25571 million during the previous year on the one hand, and the increase in the deficit on the services account to reach KD 4985 million during 2014 compared to KD 4204 million during the previous year on the other.
The developments in the Financial Account of the State of Kuwait’s BOP during 2014 demonstrate a slower growth in the net value of recorded external assets owned by residents to reach KD 16584 million during 2014 against KD 20433 million during the previous year. Consequently, the overall surplus of Kuwait’s BOP amounted to KD 363 million during 2014 against KD 957 million during the previous year.
From a broader perspective, the overall position of Kuwait’s BOP encompassing the change in the net value of external assets of some government institutions listed under the “General Government” item, in addition to the change in the total reserve assets of the CBK demonstrates a surplus of KD 15748 million during 2014 against KD 16609 million during the previous year.