Press Releases

H.E. Sheikh Salem Abdulaziz Al-Sabah, Governor of the Central Bank of Kuwait(CBK), announced in a press release to the Kuwait News Agency (KUNA) that the provisional Balance of Payments statistics of the State of Kuwait for 2004 indicate that the 'Balance on Goods' of the State of Kuwait (the arithmetical difference between the total value of merchandise exports and imports on 'fob' basis), realized a surplus estimated at KD 5688 million in 2004, thus recording an increase of KD 2138 million (60.2%), above its level of KD 3550 million during 2003. H.E. the Governor clarified that CBK resorted to estimating the value of non-oil merchandize imports and exports for the preparation of the 'Balance on Goods' of 2004, since these data were not available to date from their official sources.

H.E. the Governor indicated in his press release that the Current Account of the State of Kuwait (which reflects the outcome of all transactions between the domestic economy and other economies with relevance to goods, services, incomes from production factors whether labor or capital, and unrequited current transfers), realized a surplus of KD 5565 million during 2004 compared to a surplus of KD 2806 million during 2003, which represents an increase of KD 2759 million or 98.3%. This reflects the marked rise in world oil prices on the one hand, and the increase in the rates of return on financial instruments and investment assets in the major financial markets on the other.

H.E. the Governor added that the capital and financial flows between the domestic economy and other economies, which are recorded under the Capital and Financial Account of the Balance of Payments of the State of Kuwait, indicate an acceleration of the growth realized in the value of Kuwaitis' assets invested abroad and recorded under that account, by KD 2647 million or 84.5%, whereby that growth reached KD 5780 million during 2004 compared with a growth of KD 3133 million in the net value of these assets in 2003. In light of the mentioned developments in the Current Account and the Capital and Financial Account, the overall balance of the State of Kuwait BOP statistics realized a surplus of KD 197 million during 2004, compared to a deficit of KD 524 million during 2003. As a reflection of the above mentioned surplus in the overall balance of the State of Kuwait BOP statistics during 2004, the Total Reserve Assets of the Central Bank of Kuwait increased by the same amount (KD 197 million) above its level at end of 2003.

H.E. the Governor concluded his announcement by clarifying that the mentioned positive developments reflected by the Balance of Payments statistics of the State of Kuwait for 2004 resulted essentially from favorable external conditions, which highlights the need for intensifying efforts aimed at increasing and developing the potential of the national economy on more sustainable bases.