Coronavirus drops citizens and residents’ spending by 17% to 19.3 billion dinars in 2020

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Kuwait Finance
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The spending of citizens and residents in Kuwait witnessed a decline of 17% to reach 19.3 billion dinars during the year 2020, compared to a volume of 23.3 billion dinars in 2019, as the decrease in consumer spending in Kuwait coincided with the health measures taken by the government from the closure of activities In the first half of the year, to prevent the spread of the Corona virus in the country.

In addition, travel restrictions imposed to confront the pandemic came to limit citizens’ travel abroad for the purpose of tourism, and thus their spending decreased over the past year, in addition to the negative economic conditions that hit the private sector.

According to a statistic prepared by «Alanba» and based on data from the Central Bank of Kuwait, the spending of citizens and residents recorded its lowest levels during the past year during the second quarter, in conjunction with the tightening of the closure procedures to confront the pandemic, reaching 3.2 billion dinars only.

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Then, spending increased during the third quarter of 2020, in conjunction with the gradual return of life to normal, the end of the curfew in the country and the return of economic activities to work again, to reach 5.4 billion dinars during the third quarter, to rise again during the fourth quarter to about 5.6 billion dinars.

Points of sale and cash withdrawals

Returning to the statistics of citizens ‘and residents’ spending, the value of transactions of point of sale devices (inside and outside Kuwait) during the past year amounted to about 9.17 billion dinars, an annual decline of 15% and a value of 1.6 billion dinars, compared to 10.8 billion dinars during 2019.

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Point of sale transactions are divided into transactions that took place inside Kuwait at a value of 8.8 billion dinars during 2020, a decrease of 10.6%, compared to 9.9 billion dinars in 2019, while the value of transactions outside Kuwait amounted to about 286 million dinars, a decrease of 67%, compared with 856 million dinars in 2019. This explains the great impact of citizens not traveling abroad during the past year.

With regard to transactions of ATMs “cash withdrawals” during the past year (inside and outside Kuwait), they amounted to about 10 billion dinars, a decline of 19% compared to 12.5 billion dinars during 2019, divided into withdrawals at home amounted to 9.9 billion dinars, while the withdrawals amounted to Outside Kuwait, about 209 million dinars during the year 2020.

Credit granted

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In terms of credit granted by Kuwaiti banks during the past year, it reached about 39.78 billion dinars by the end of the year, registering an annual increase of 3.5%, compared to its levels at the end of December 2019 amounting to 38.43 billion dinars.

Consumer loans directed to the purchase of durable goods and cars witnessed a large annual jump by the end of 2020, by 11.2%, at a value of 162 million dinars, to record an unprecedented record level of 1.61 billion dinars, compared with 1.44 billion dinars at the end of December 2019, while installment loans, granted to Kuwaitis, were recorded. For the purpose of renovating or purchasing private housing, an annual growth rate of 6.2%, at a value of 752 million dinars, to reach the level of 12.7 billion dinars, compared with 11.9 billion dinars at the end of December 2019.

Deposits of the banking sector

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With regard to deposits in the Kuwaiti banking sector, they recorded an annual increase of 3.7% at the end of last year to reach about 45.27 billion dinars, compared with the level of 43.62 billion dinars, and this is mainly supported by the jump recorded by private sector deposits with Kuwaiti banks during the past year, To increase by 4.6% and the value of 1.56 billion dinars, to reach the level of 35.27 billion dinars by the end of 2020, compared with 33.7 billion dinars by the end of 2019.

While government deposits in the banking sector witnessed an annual increase of 7.5%, and the value of 555 million dinars, to reach 7.9 billion dinars by the end of 2020 , Compared to the level of 7.28 billion dinars at the end of 2019.

560 million dinars were withdrawn by non-residents from their deposits in banks in 2020

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Central Bank data revealed that there was a significant decline in the volume of non-resident deposits in Kuwait at the end of last year, reaching a level of 6.9 billion dinars by the end of December 2020, compared with 7 billion dinars at the end of December 2019, which means that non-residents in Kuwait withdrew about 560 million dinars. Of their deposits in the Kuwaiti banking sector during the past year, in conjunction with the historic decline in domestic interest rates during the past year.

55.8 million dinars of checks without balance in 2020

The total value of bounced checks due to lack of balance during the past year witnessed about 55.8 million dinars and 4,017 checks, an annual decline of 30%, compared with 79.6 million dinars, the value of bounced checks for lack of balance during the year 2019 for 5,508 checks, while the total number of accounts closed due to Checks returned for lack of balance amounted to 640 accounts, with checks amounting to 22.5 million dinars, compared to 899 accounts closed in 2019, with checks worth 42 million dinars.

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Source Al-Anbaa

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