Press Releases

The provisional Balance of Payments statistics of the State of Kuwait for 2005 which is prepared by the Central Bank of Kuwait (CBK) indicate an acceleration of the growth realized in the surplus of the 'Balance on Goods' (the arithmetical difference between the total value of merchandise exports and imports on 'fob' basis), by KD 3681 million (67.8%) to KD 9111 million during 2005, above its level of KD 5430 million during 2004.

The Current Account (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 9527 million during 2005 compared to a surplus of KD 5353 million during 2004, which represents an increase of KD 4174 million or 78%. This increase is attributable essentially to the marked rise in world oil prices on the one hand, and the increase in the rates of return on financial instruments and other investment assets in the major financial markets on the other.

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, indicate an acceleration of the realized growth in the value of Kuwaiti assets invested abroad and recorded under that account, by KD 3153 million or 65.3%, whereby that growth reached KD 7983 million during 2005 compared with a growth of KD 4830 million in the net value of these assets in 2004. As an outcome 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 165 million during 2005, compared to a surplus of KD 197 million during 2004. As a reflection of the above mentioned surplus in the overall balance of the State of Kuwait BOP statistics during 2005, the Total Reserve Assets of the CBK increased by the same amount (KD 165 million) at end of 2005 above its level at end of 2004.

When the overall position of the State of Kuwait BOP statistics is considered from a broader perspective to encompass the change in the net value of external investments of some government institutions and authorities recorded under the "General Government" item, along with the above mentioned change in total reserve assets of the CBK, the overall position of the Balance of Payments shows a surplus of KD 8000.7 million during 2005, compared with a surplus of KD 5944.3 million during the previous year, i.e. a rise of KD 2056.4 million or 34.6%.