Kuwait’s Trade Surplus with Japan Skyrockets by 53.4%
In a stunning development, Kuwait’s trade surplus with Japan has surged by an impressive 53.4 percent year-on-year in February, reaching a total of $652 million. This remarkable growth has been primarily driven by energy products, with exports outpacing imports significantly.
Exports to Japan Soar by 34.2%
According to reports from the Kuwait News Agency, overall exports to Japan experienced a staggering 34.2 percent increase in February 2024, totaling $673 million compared to the same period last year. This marks the first increase in exports to Japan in two months.
Imports from Japan Decrease by 14.4%
On the flip side, imports from Japan to Kuwait amounted to $121 million in February, showing a notable decrease of 14.4 percent compared to the same period in 2023.
Middle East’s Trade Surplus with Japan Sees a 0.4% Increase
The state news agency also reported that the Middle East’s trade surplus with Japan witnessed a slight 0.4 percent year-on-year increase, reaching $5.3 billion in February.
Crude Oil and Natural Resources Dominate Exports
Crude oil, refined products, liquefied natural gas, and other natural resources constituted a significant 96.3 percent of the region’s total exports to Japan, showing a 1.5 percent increase in February.
Japan’s Global Trade Deficit Decreases by 59.2%
In a surprising turn of events, Japan recorded a global trade deficit of $2.5 billion for the second consecutive month in February, marking a substantial 59.2 percent decrease compared to the previous year.
Fitch Reaffirms Kuwait’s Sovereign Credit Ratings
Earlier this month, credit rating agency Fitch reaffirmed Kuwait’s foreign and local currency sovereign credit ratings at “AA-” with a stable outlook. This rating is a testament to Kuwait’s robust fiscal and external balance sheets.
Kuwait’s Heavy Reliance on Oil Poses Challenges
While Kuwait’s stable outlook rating reflects its strong financial capacity, Fitch noted that the country’s heavy dependence on oil, generous welfare system, and large public sector could pose challenges in the long term. Efforts to tackle fiscal and economic rigidities and approve legislation for debt issuance are crucial for Kuwait’s economic sustainability.