Kuwait Trade Surplus at 11-Year Low

Kuwait’s trade surplus retreated to an 11-year low of KD4.7 billion ($15.5 billion) in 2016 or 14% of GDP, as oil export earnings remained weak against a backdrop of limited import growth, Albawaba reported. Oil export revenues continued to be weighed down by lower oil prices, though they are expected to pick up in 2017 amid a sustained recovery in prices. Meanwhile, imports were flat in 2016, with the weakness mainly stemming from the continued contraction in consumer goods imports. By contrast, growth in imports of capital goods remained healthy, reflecting the strong momentum seen in capital spending and investment. Oil export receipts declined by 14.1% in 2016 to KD12.5 billion ($41 billion), its lowest level in just over a decade. Oil export revenues remained in decline amid a depressed global oil price environment in 2016. The Kuwait export crude price was down 18% during the year after logging in an annual average of $39 per barrel.