Kuwait's economy has experienced a lull in the past months with reports pointing to low growth rates in credit facilities and a decline in real estate transactions.
This is despite Kuwait's budget increase. Project spending rose during the first quarter of this year to KWD 527mn ($1.7bn), up 332% from the first quarter of 2022. Target projects included projects in the electricity and water sector, electricity interconnection projects for the Gulf countries, and projects in the transport and communications sector.
However, banking facilities recorded revenue of KWD 52.4bn ($170.6bn), slightly down from the level seen at the end of last year – KWD 52.5bn ($171bn). Although the decline is small, it could be an indicator of a decline in credit demand in recent months.
Unlike the United States, Kuwait does not produce audited weekly, monthly, periodic, or annual data regarding consumer confidence, industrial and agricultural production rates, financing flows, consumer prices, and other key indicators.
The Central Statistical Bureau is inconsistent in publishing data reports — especially regarding economic data. This poor record of documentation and transparency has drawn the ire of international institutions such as the World Bank and the International Monetary Fund who complain about delays and lack of data.
Real estate a good indicator of state of economy
On its part, the real estate sector is one of the most important non-oil sectors and its data is a good indicator of the state of the national economy.
A report from the National Bank of Kuwait, published on 16 May 2023, indicated that the value of real estate transactions fell to KWD 714mn ($2.3bn) in the first quarter of this year, the lowest since the second quarter of 2020 – when the country was locked down due to the Covid-19 pandemic.