The Value Of Food Imports To Kuwait's Gdp Ranks Fourth

Global food prices are affecting the balance of payments, inflation rates, and the fiscal situation of governments. To determine how much each country is impacted, MUFG Bank, one of the largest Japanese banks, looks at the ratio of food commodity imports to gross domestic product in emerging economies, such as Kuwait, whose GDP accounts for about 4% of the total.

It was reported by one of its Arabic-language sister papers that Kuwait will have a gross domestic product of 36 billion dinars in 2020, and that this has shrunk by 9% as a result of the effects of the Covid-19 pandemic and the government's efforts to contain it, although the IMF predicts an increase of 3% in GDP from the non-oil sector, as well as an increase in inflation of 4.4%.

On an annual basis, inflation rose by 4.30% in December according to statistics from the Central Administration of Statistics. Statistics Kuwait stated in a statement that inflation increased by 0.73% last December on a monthly basis, as a result of the increase in prices of most of the main groups that affect index movements, particularly food and education.

Last December, the food and beverage index increased by 7.20 percent compared to the same period in 2020.

Kuwait ranked fourth in the Gulf region in the ratio of food imports to GDP, which was topped by Bahrain, followed by Oman and the UAE, with rates varying between 4 and 5%. A share of about 2.5% of GDP placed Saudi Arabia in fifth place, followed by Qatar at less than 2%.

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