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Oil price recovery drives Kuwait’s trade surplus

Slowdown in import growth also a factor

The temporary recovery in oil prices underpinned Kuwait’s trade surplus in the second quarter of 2015 for the first time in three quarters, says a report.

The trade balance was a surplus of KWD2.4 billion in the second quarter, although it is still relatively low, according to NBK’s “Economic Update on Foreign Trade”.

This rise has come mainly as a result of higher oil revenues due to the slight recovery in oil prices in the second quarter of 2015 and a slowdown in import growth.

Oil export revenues rose in the second quarter of 2015 to reach KWD4.3bn from KWD3.6bn in the first quarter of 2015.

Brent crude price rose from an average of $54 a barrel in the first quarter of 2015 to $62 a barrel in the second quarter of 2015, which, in turn, contributed to the rise in oil revenues.

Non-oil export growth also improved in the second quarter of 2015, but continued to shrink by seven per cent on an annual basis at the same time.

(KWD1 = AED12.09, at the time of publishing)