Arab News, Mon, Mar 25, 2024 | Ramadan 15, 1445
Kuwait’s trade surplus with Japan rises 53.4% in February
Kuwait:
Kuwait’s trade surplus with Japan surged 53.4 percent year-on-year in February
to $652 million, driven by energy products, as exports outpaced imports
significantly.
According to the Kuwait News Agency, overall
exports to Japan soared by 34.2 percent in February 2024 to $673 million
compared to the same month in the previous year, marking the first increase in
two months.
On the other hand, imports from Japan to Kuwait
totaled $121 million in February, reflecting a decrease of 14.4 percent compared
to the same period in 2023.
The state news agency reported that the Middle
East’s trade surplus with Japan also experienced a 0.4 percent year-on-year
increase to $5.3 billion in February.
Crude oil, refined products, liquefied natural
gas, and other natural resources constituted 96.3 percent of the region’s total
exports to Japan, marking a 1.5 percent increase in February.
Similarly, the Middle East region’s total imports
from Japan increased by 4 percent year-on-year in February, attributed to the
demand for machinery, manufactured goods, and electrical machinery.
The report also highlighted that Japan recorded a
global trade deficit of $2.5 billion for the second consecutive month in
February, marking a 59.2 percent decrease compared to the previous year.
China retained its position as Japan’s largest
trading partner in February, followed by the US.
Earlier this month, credit rating agency Fitch
reaffirmed Kuwait’s foreign and local currency sovereign credit ratings at “AA-”
with a stable outlook.
According to a press statement, Kuwait’s stable
outlook rating stemmed from its robust fiscal and external balance sheets.
An “AA-” rating from Fitch suggests very low
default risk and a strong capacity for fulfilling financial commitments.
The rating firm noted that Kuwait maintains among
the strongest fiscal and external balance sheets among Fitch-rated sovereigns.
However, the report noted that the rating is
somewhat constrained by Kuwait’s heavy reliance on oil.
“The rating is constrained by Kuwait’s heavy
dependence on oil, its generous welfare system and large public sector that
could be challenging to sustain in the long term, and a political context that
hampers efforts to tackle consistent fiscal and economic rigidities and approve
legislation to allow debt issuance and clarify government financing sources,”
said Fitch.