KUWAIT: The overall export unit value index declined by 9.3 percent in 2014 compared to the preceding year, according to figures released by the Central Statistical Bureau yesterday. Compared to the corresponding quarter of the preceding year, the overall export unit value index decreased by 27.3 percent in the fourth quarter of 2014, the bureau told KUNA. In the same quarter, compared to 2013, both the indices for fuel and non-fuel products decreased by 28.9 percent and 2.1 percent respectively, the bureau said, adding in 2014, compared to 2013, the overall import unit value index fell by 4.4 percent.
Compared to the corresponding quarter of the previous year, the overall import unit value index decreased by 11.1 percent in the fourth quarter of 2014. While the index for food, beverages and tobacco increased by 0.6 percent, crude materials and manufactured goods (except food, beverages and tobacco) indices decreased by 17.9 percent and 13.0 percent respectively compared to the corresponding quarter of the preceding year, the bureau said.
The overall export volume index went down by 2.2 percent in 2014 compared to the previous year, it said, adding that the overall import volume index increased by 12.8 percent in 2014. Compared to the corresponding quarter of the preceding year, the overall import volume index increased by 23.8 percent in fourth quarter of 2014, the bureau noted. The overall import volume index rose by 23.9 percent in the first quarter of 2014 compared to the same period in 2013, it pointed out.
In 2014, balance of trade was 116.9 percent, while it was 132.5 in 2011 because of decreasing oil prices during 2014, it said, adding that by quarters in 2014, the range of terms of trade was between 120.8 and 98.7 percent. In Sept-Dec 2014, it became the lowest level (98.7 percent).
Terms of trade refers to the relative price of exports in terms of imports and is defined as the ratio of export prices to import prices. It is a measure of how much imports an economy can get for a unit of export goods. Foreign trade indices were calculated with the base year 2010=100 as the 2007=100 base year index was outdated due to the developments in economy, while quality differences have occurred among the products and weights of economic activities have changed.
Meanwhile, head of the National Assembly’s budgets committee MP Adnan Abdulsamad said yesterday that subsidies on services provided to citizens will not be touched during the new 2015/2016 fiscal year. He said that subsidies are estimated at KD 3.7 billion, down 34 percent from last year. He however insisted that the cuts will not affect subsidized services, but came from unnecessary items.
The subsidies are part of the fifth and final chapter of expenditures or the so-called miscellaneous expenditures, which are estimated at KD 8.78 billion in the new budget, 23 percent lower than the previous year, Abdulsamad said. He said it was found that the main reason for the drop was due to not making new allocations to the so-called actuarial deficit at the Public Institution for Social Security. Abdulsamad said that the finance ministry did not make any new allocations because of the drop in oil prices and decided to delay the action until next year.
Separately, 12 lawmakers yesterday demanded a debate over the security situation in the country following two deadly suicide bombings in Saudi Arabia’s Eastern Province in the past two weeks. The lawmakers called for allocating one hour in today’s session to “debate the security situation in the country and the readiness of security agencies to prevent anyone from threatening the security of the country or terrorize the population”. They said that the debate was necessary in light of the two criminal attacks in Saudi Arabia, in reference to the suicide bombings against two Shiite mosques that killed over 25 people and wounded a hundred others.
They also cited the delicate security situation in the Gulf region and threats by terrorist organizations, adding that Saudi security agencies have been placed on alert. The government should agree to the debate in order for it to take place today as the concerned minister can ask for a two-week delay. Head of the Assembly’s foreign relations committee MP Hamad Al-Harashani said he will speak during the debate about countries that are attempting to destabilize Gulf and Arab countries.
