Fitch Solutions, a credit rating agency, has said that Kuwait’s retail transactions hit $4.2 billion in the last quarter of 2022.
This was in contrast to $3.7 billion dinars in the first quarter of 2021, confirming high oil prices and the delay in introducing the value-added tax will further support consumer spending growth in 2023.
Fitch stated that the latest retail trade data in Kuwait signals robust growth in consumer spending.
Meanwhile, consumer spending in Kuwait is predicted to achieve moderate and stable growth of 4.4 per cent in 2023, according to Fitch Solutions, a credit rating agency.
These findings suggest that total consumer spending (in nominal terms) in Kuwait should reach 20.6 billion dinars this year – up from 19.2 billion dinars last year.
According to the estimates, Kuwait’s GDP growth is bound to reach 2.7 per cent in 2023 and 5.1 per cent in 2024, and the percentage of inflation three per cent in 2023 and 2.2 per cent in 2024, according to Al-Qabas daily.
The agency noted that its prediction of the growth of consumer spending in Kuwait for the current year reflects its forecasts of postponing the introduction of the VAT until 2024, amid rising concerns about inflation and political issues.
Last year, the analytics firm also estimated that household spending in Kuwait would rise by 6.7 per cent over 2022.
