Arabic local newspaper Alanba reported that The total salaries paid to workers in the public sector and included in the Kuwaiti budget witnessed a jump of 4 billion dinars during the past 10 years, during the period from the fiscal year 2010/2009 until the fiscal year 2019/2018, as it rose from 3.2 billion dinars to 7.2 billion dinars, with a growth rate A compound annual rate of 9.5%, bringing the total salaries paid to ministries and government departments during the past 10 years to about 52 billion dinars.
In a special study prepared by the informed source on the consumption spending of citizens and residents in Kuwait and abroad during the past 10 years (between 2010 and 2020), and based on the statistics of the consumption agreement in the country and the data of the Central Bank of Kuwait, it appears that high salaries in the government and private sector, in addition to the strong growth of facilities Personality provided by Kuwaiti banks are the two main drivers of consumer spending for citizens and residents inside and outside Kuwait.
The data show that the spending of citizens and residents during the past 10 years amounted to about 88 billion dinars, through the transactions of point of sale devices in Kuwait and abroad, with a compound annual growth rate of 9%, as these figures show the strength of the consumer sector in Kuwait and the volume of high consumer spending abroad on Travel and tourism, in light of the high purchasing power of the Kuwaiti consumer, in addition to an important segment of residents with high salaries.
The data indicate that the personal facilities provided by Kuwaiti banks have witnessed strong growth during the past 10 years, as their balance reached by the end of November 2020 about 17.2 billion dinars, equivalent to 43% of the total credit facilities portfolio of Kuwaiti banks, which amounted to 40 billion dinars, with an annual growth rate. Composite during the past 10 years amounted to 7%, or equivalent to a total increase of 8.7 billion dinars, compared to 8.5 billion dinars at the end of 2010.
As for consumer loans, which constitute 85% of personal loans and are the main catalyst for consumption in addition to salaries, they recorded a compound annual growth rate of 9.8% over 10 years, to be recorded by the end of November 2020, about 14.6 billion dinars.
The value of POS devices transactions inside Kuwait during the past 10 years constituted about 92% of the total value of POS devices operations, equivalent to 80.63 billion dinars, while the remaining percentage of transactions were outside Kuwait as a result of spending on shopping and hotel reservations during travel trips, which amounted to Its total value is 7.32 billion dinars during the same period.
After a period of 5 years of remarkable growth in POS transactions, from 2011 to 2015, as a result of the good economic conditions that prevailed and the strong growth in consumer loans and government salaries during that period, consumer spending began to slow in 2016 to record 5.9%.