Consumer spending increased by 34% at the end of 2021 – TIMES IN ARABIC






KUWAIT CITY, February 7: Data from the Central Bank of Kuwait shows that the consumption spending of citizens and residents in Kuwait at the end of 2021 increased by 8.7 billion dinars, or 34%, to a record and historical level , compared to spending levels during 2020. reaching some 34.3 billion dinars at the end of last year, compared to 25.6 billion dinars at the end of 2020, the Al-Anba daily reports. This is compared to spending in 2019, before the outbreak of the coronavirus pandemic, spending also saw a jump of 47%, worth 11 billion dinars, compared to spending 23.3 billion dinars. dinars during 2019, according to the data, a copy of which has been obtained by the newspaper.

Spending
This record spending by citizens and residents last year coincides with the end of the strict restrictions imposed during 2020 to contain the spread of the Covid-19 pandemic, in addition to deferring premiums for citizens for a full year, and those for residents in loans for a term of 6 months, which provided great liquidity to the market and favored consumer spending. The fourth quarter of last year saw the highest level of consumer spending in 3 months, amounting to about 9.5 billion dinars, which coincided with the opening of the Kuwait airport and the normalization of operating capacity, which fueled the consumer spending growth during the last 3 months of the year. Over the past year, consumption spending by citizens and residents, through outlets, cash withdrawals and websites, within Kuwait amounted to about 32.7 billion dinars, while their spending through these channels outside from Kuwait amounted to about 1.5 billion dinars.

Jump
In a related context, consumer loans, aimed at the purchase of durable goods and automobiles, experienced an annual jump at the end of last year of 15%, with a value of 238 million dinars, to reach 1.84 billion. dinars, compared to 1.6 billion dinars at the end of 2020. On the other hand, installment loans given to citizens for the purpose of renovating or buying private homes, saw an increase of 9% during 2021 at a value of 1.68 billion dinars, to register a level of 14.39 billion dinars at the end of last December, compared to 12.7 billion dinars at the end of December 2020. Thus, the credit granted by Kuwaiti banks at the end of of 2021 recorded a notable increase of 6.3% to reach a new record level of 42.28 billion dinars, an increase of 2.52 billion dinars, compared to its levels at the end of December 2020 of 39, 76 billion dinars. Loans used for the purchase of securities also saw an increase at the end of last year by 9%, with a value of 233 million dinars, to register a level of 2,812 million dinars at the end of December 2021, compared to 2.58 billion dinars at the end of December. end of December 2020.

Increase
The oil and gas sector also saw an increase over the past year of 14.3%, with a value of 267 million dinars, to register a level of 2.14 billion dinars at the end of last December, compared with 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, to reach the level of 44.56 billion dinars, compared to its 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 last November. This decline 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, pushing up the government deposit balance by Kuwaiti banks to 7.37 billion dinars at the end of the year. last December, compared to a balance of 7.94 billion dinars at the end of 2020.

Rejected
At the private sector level, deposits in dinars decreased during 2021 by 0.86%, with a value of 306 million dinars, which brings the balance of private sector deposits to 34.96 billion dinars at the end of last December, compared to to a balance of 35.27 billion dinars at the end of the fourth quarter of 2020, and also decreased on a monthly basis by 0.52% compared to 35.15 at the end of last November. While the private sector’s foreign currency deposits increased by 8% over the past year, to a value of 164 million dinars, bringing the balance of foreign currency deposits to 2.22 billion dinars at the end of last December, compared to to 2,059 at the end of December. of the fourth quarter of 2020, while it decreased by 1.8% on a monthly basis, compared to 2.26 billion dinars at the end of November. The profits of 32 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, compared to 17.9 million dinars just before the start of the exchange. Corona pandemic, and if the comparison is annual, specifically with 2020, profit increased by 24%, including its value of 8.7 million dinars, to record a net profit, compared to 36.3 million dinars in 2020.

Profits
The increase in profit was driven by a record increase in revenue, which went from the level of 61.4 million dinars at the end of 2019 to 90.11 million at the end of 2021, and also witnessed an increase in its fees. compared to 2020, which amounted to 79.66 million dinars. This comes as the exit from the market of 6 exchange companies mitigated the increase in expenses versus income, as expenses increased to 45 million dinars at the end of December 2021 for 32 companies, compared to 43.36 million dinars for 38 companies at the end of December. 2020.





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