KUWAIT CITY, Dec 21: Official records indicate a notable 12.4% increase in Kuwaitis' expenditure on international tourism and travel during the initial nine months of the present year. The total spending reached approximately 3.53 billion dinars from January to the end of September 2023, up from around 3.14 billion dinars during the corresponding period in the previous year.

Detailed insights from Kuwait's Central Bank balance of payments data disclosed a surge in Kuwaitis' overall spending on tourism and travel during the third quarter of the current year (July to September). This uptick aligns with the active travel season, reaching approximately 1.15 billion dinars, a significant rise compared to the one billion dinars recorded in the second quarter. The first quarter saw citizens' travel spending at about 1.3 billion dinars. A simple calculation reveals an average monthly spending on travel by citizens of about 392 million dinars.

These figures represent the highest spending on tourism and travel by Kuwaitis in recent years, specifically since the outbreak of the global pandemic and Kuwait's implementation of strict precautionary measures, including the suspension of air traffic, which led many citizens to stay within the country.

In a separate context, remittances from expatriate workers abroad experienced a substantial decline of approximately 30%, amounting to 1.26 billion dinars during the first nine months of 2023. This decrease is evident when compared to the remittances totaling about 4.23 billion dinars during the same period in 2022.

Expatriate remittances have consistently decreased throughout the current year, starting at about 1.22 billion dinars in the first quarter and declining by 27% in the second quarter to 892.1 million dinars. Although the pace of decline slowed in the third quarter, remittances still decreased to 867.7 million dinars.

A closer examination reveals quarterly declines in expatriate transfers, resulting in an average quarterly transfer of about 993 million dinars in 2023, with a monthly average of 330 million dinars. This contrasts with the previous fiscal year, where the average quarterly transfers were 1.4 billion dinars, with a monthly average of 470 million dinars.

Other balance of payments data indicates that Kuwait's current account reached 12.2 billion dinars in the first nine months of the year, with 3.2 billion dinars in the first quarter, 4.2 billion dinars in the second quarter, and 4.7 billion dinars in the third quarter.

The goods and services account totaled about 7.7 billion dinars over the nine-month period, distributed as 2.2 billion dinars in the first quarter, 2.45 billion dinars in the second quarter, and 2.98 billion dinars in the third quarter.

Merchandise exports (FOB) amounted to approximately 19.5 billion dinars, with 6.6 billion dinars in the first quarter, 6.1 billion dinars in the second quarter, and 6.7 billion dinars in the third quarter. Notably, oil exports comprised 92.3% of merchandise exports, totaling about 18 billion dinars.

In contrast, merchandise imports to Kuwait totaled 7.5 billion dinars during the first nine months, with 2.5 billion dinars in the first quarter, 2.5 billion dinars in the second quarter, and 2.4 billion dinars in the third quarter.

The balance of payments serves as a barometer for Kuwait's economic performance, reflecting its interaction with the global economy. Decision-makers leverage this tool to assess the competitiveness of the national economy, aiding in the formulation, implementation, and evaluation of macroeconomic policies, particularly in the realm of foreign affairs, production structure, national economic strength, and competitiveness.

Additional data unveiled that spending by foreign tourists (non-resident visitors) in Kuwait for the first nine months of 2023 totaled approximately 394.4 million dinars. Their spending during the periods from January to March, April to June, and July to September amounted to 135.8 million dinars, 135.6 million dinars, and 123 million dinars, respectively.