KUWAIT CITY, April 28: The Central Bank of Kuwait announced on Sunday that Kuwait’s balance of payments faced a deficit of 150 million Kuwaiti dinars in 2023, a stark contrast to the surplus of 1.1 billion dinars recorded in 2022.
According to statistical data provided to Kuwait News Agency (KUNA), the country’s current account registered a surplus of approximately 15.8 billion dinars in 2023, marking an 18.3% decrease from the previous year. The bank attributed this decline to a reduction in the surplus of the merchandise balance and an uptick in the net deficit within the services account.
The merchandise balance surplus saw a notable decrease of about 6.3 billion dinars, or 28.7%, compared to the preceding year, settling at 15.7 billion dinars. This decline primarily stemmed from a reduction in oil revenues, which dropped by approximately 4.8 billion dinars, or 16.7%, due to a decrease in average oil prices.
The services account, encompassing transactions related to services between residents and non-residents, including transportation, travel, communications, and construction services, experienced a deficit of 5.8 billion dinars in 2023, compared to 5.1 billion dinars in the previous year.
Regarding the secondary income account, the Central Bank noted a decline in the value of current transfers abroad, reaching approximately 3.9 billion dinars (approximately 12.8 billion dollars) in 2023, down from 5.4 billion dinars in 2022. This decrease was attributed to a decline in remittances from working expatriates, which fell to 3.8 billion dinars last year from 5.4 billion dollars in 2022.