Consumer spending up 34% at the end of 2021 – ARAB TIMES
KUWAIT CITY, February 7: Data from the Central Bank of Kuwait shows consumer spending by Kuwaiti citizens and residents at the end of 2021 jumped 8.7 billion dinars, or 34%, to a record high and historic, compared to 2020 spending levels, reaching around 34.3 billion dinars at the end of last year, compared to 25.6 billion dinars at the end of 2020, Al-Anba daily reports. This is compared to spending in 2019, before the outbreak of the coronavirus pandemic, spending also registered a jump of 47%, with a value of 11 billion dinars, against spending of 23.3 billion dinars in 2019, according to the data, a copy of which was obtained by the daily.
This record spending by citizens and residents over the past year coincides with the end of the strict restrictions imposed in 2020 to contain the spread of the Covid-19 pandemic, in addition to the deferral of citizens’ premiums for a full year and residents’ premiums on loans for a period of 6 months, which provided ample liquidity to the market and increased consumer spending. The fourth quarter of last year saw the highest level of consumer spending in 3 months, amounting to around 9.5 billion dinars, which coincided with the opening of Kuwait airport and the operating capacity returned to normal, which boosted consumer spending growth in the last 3 months of the year. Over the past year, consumer spending by citizens and residents, through outlets, cash pickups and websites, inside Kuwait amounted to approximately 32.7 billion dinars, while their spending through these channels outside of Kuwait amounted to around 1.5 billion dinars.
In a related context, consumer loans, oriented towards the purchase of durable goods and cars, experienced an annual jump of 15% at the end of last year, worth 238 million dinars, to reach 1.84 billion dinars, against 1.6 billion dinars at the end of 2020. On the other hand, installment loans granted to citizens for the purpose of renovating or buying private housing increased by 9% during the year. year 2021 for a value of 1.68 billion dinars, to record a level of 14.39 billion dinars at the end of last December, against 12.7 billion dinars at the end of December 2020. Thus, the credit granted by the banks Kuwaiti at the end of 2021 registered a remarkable increase of 6.3% to reach a new record level of 42.28 billion dinars, up 2.52 billion dinars, compared to its levels at the end of December 2020 of 39, 76 billion dinars. Borrowings allocated to the purchase of securities also increased at the end of last year by 9%, with a value of 233 million dinars, to record a level of 2.812 billion dinars at the end of December 2021, against 2 .58 billion dinars at the end of December 2021. at the end of December 2020.
The oil and gas sector also increased over the past year by 14.3%, with a value of 267 million dinars, to record a level of 2.14 billion dinars at the end of last December, against 1 87 billion dinars at the end of December. 2020. Regarding deposits in the Kuwaiti banking sector, deposits in Kuwaiti banks decreased by 1.57% at the end of last year, with a value of 713.5 million dinars, reaching the level by 44.56 billion dinars, compared to their levels recorded at the end of 2020, amounting to 45.27 billion dinars, and also decreased by 0.57% per month, compared to 44.82 billion dinars in November last. This drop in deposits in the Kuwaiti banking sector was driven by a 7.2% decline in government deposits, worth 571 million dinars, over the past year, bringing the balance of deposits from Kuwaiti banks to 7.37 billion dinars at the end of last December, compared to a balance of 7.94 billion dinars at the end of 2020.
At the private sector level, deposits in dinars decreased during the year 2021 by 0.86%, with a value of 306 million dinars, bringing the balance of private sector deposits to 34.96 billion dinars at at the end of last December, against a balance of 35.27. billion dinars at the end of the fourth quarter of 2020, and also fell at the monthly level by 0.52% compared to A 35.15 at the end of last November. While private sector deposits in foreign currency increased by 8% over the past year, with a value of 164 million dinars, bringing the balance of foreign currency deposits to 2.22 billion dinars at the end of last December, against 2.059 at the end of the fourth quarter of 2020, while it decreased monthly by 1.8%, against 2.26 billion dinars at the end of November. The profits of 32 foreign exchange companies operating in the local market increased by more than 150% at the end of 2021, as they recorded net profits of 45 million dinars, against 17.9 million dinars just before the start from the Corona pandemic, and if the comparison is on an annual basis, precisely with 2020, the profits increased by 24%, including its value of 8.7 million dinars, to register a net profit, compared to 36, 3 million dinars in 2020.
The increase in profits was driven by a record increase in revenues, which increased from the level of 61.4 million dinars at the end of 2019 to 90.11 million at the end of 2021, and also saw an increase in its rates compared to to 2020, which amounts to 79.66 million dinars. This comes as the exit of 6 stockbrokers from the market has mitigated the increase in expenses relative to income, with expenses reaching 45 million dinars at the end of December 2021 for 32 companies, against 43.36 million dinars for 38 companies at the end of December. 2020.