Press Releases

The Central Bank of Kuwait (CBK) has finished compiling the Balance of Payments (BOP) statistics of the State of Kuwait for 2006, and revising the BOP statistics for 2005. Provisional BOP statistics for 2006 indicate that the surpluses realized in the main external balances within these statistics continued to grow at accelerated rates during that period, compared to 2005. The surplus realized in 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), grew at an accelerated rate (47.7%) to reach KD 14796 million during 2006 compared to a surplus of KD 10018 million during 2005.

The increase in the Current Account surplus of the State of Kuwait during 2006 over the previous year, was the outcome of developments in the main items under that account, particularly the rise of the surplus realized in the Balance on Goods (34.5%), the decline in the deficit realized in the Services Account (17.4%), the accelerated growth in the net income realized from the Kuwaiti external investment assets under the "Income from Investment" item (50.2%), and the rise in outbound unrequited transfers (1%).

Regarding the developments in the Financial Account, the growth in the net value of Kuwaiti assets invested abroad and recorded under that account, accelerated during 2006 compared to the previous year. Specifically, the Financial Account of the State of Kuwait during 2006, recorded a growth of KD 12929 million in the value of Kuwaiti assets invested abroad compared to a growth of KD 9094 million during 2005, i.e. an increase of KD 4835 million or 53.2%. The increase realized during 2006 in the value of these assets invested abroad was distributed as follows: direct investments (16.2%), portfolio investments (53.0%) and other investments (30.8%).

As a result of the mentioned developments, the surplus in the overall balance of the State of Kuwait BOP statistics increased markedly to KD 1047 million during 2006, compared to a surplus of KD 231 million during 2005, i.e. a rise of KD 815 million or 351.3% . As a reflection of the above mentioned surplus in the overall balance of the State of Kuwait BOP statistics during 2006, the Total Reserve Assets of the CBK increased by KD 1047 million at end of 2006 above its level at end of 2005.

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 change in total reserve assets of the CBK, the overall position of the Balance of Payments shows a surplus of KD 11876.7 million during 2006, compared with a surplus of KD 7992.6 million during the previous year, i.e. a rise of KD 3884.1 million or 48.6%.

Further details on the developments in the State of Kuwait BOP statistics during 2006, are presented in Table 47 (State of Kuwait BOP statistics) in the January-March 2007 issue of the CBK Quarterly Statistical Bulletin.