In the second quarter, the index grew by KD631.6 million – amounting to a 6.4 per cent uptick – compared to the period between January and March, according to the Central Bank of Kuwait.
According to the data, this increase was namely attributed to the increase in spending through points of sale and a soaring increase in online purchases, which shot up by KD2.4bn.
Consumer spending during the first half of this year soared to about KD20.444bn, compared to KD15.784bn during the corresponding period last year, yielding a growth of 29.5 per cent.
In addition, spending this year ratcheted up by KD5.823bn, a jump of 123.5 per cent, compared to 2020 when the country was subject to severe Covid-19 restrictions.
According to a June report by Fitch Solutions, consumer spending in Kuwait was expected to witness ‘solid growth’, with household spending projected to rise by 6.2 per cent this year.
“The positive growth in Kuwait’s real household spending in 2022 will be due to Kuwait’s improving epidemiological situation,” the report said.
“The easing of Covid-19 related restrictions is pushing up household spending in 2022 relative to 6.0 per cent in 2021, creating a low base for spending to grow which is why we note the deceleration in 2023.”