Kuwaiti inflation to more than double after VAT in 2019, research shows

Published on Thursday, 5 April , 2018 67 Views

Kuwait News

#Central Bank of Kuwait #Kuwait #VAT

Following forecasted subdued inflationary pressures in Kuwait throughout 2018, inflation will rise in 2019 following the implementation of value-added tax (VAT) in 2019, according to a new report from BMI Research.

In the report, BMI noted that Kuwaiti inflation is likely to remain lower than previously anticipated in 2018, with average and year-end inflation forecast at 1.2 percent and 1.5 percent, respectively.

Why Facebook’s Profit Margin Is Shrinking

Facebook Inc.’s spending has increased by $7 billion, or 47 percent, this year through Sept. 30, and many…

The report added that month-on-month price growth has been negative for the last three months,

and that “persistent political gridlock” and higher oil prices have led the government to delay the implementation of VAT and decide against raising the subsidised price of oil.

If VAT is implemented in 2019 as is planned, BMI forecasts year-end inflation to rise to 4.5 percent and average inflation to 4 percent.

In neighbouring Saudi Arabia – which implemented VAT this year – inflation rose to 3 percent from -1.1 percent in December, while price growth increased to 4.8 percent from 2.7 percent over the same period in the UAE.

Against this backdrop, BMI believes the Central Bank of Kuwait to mimic the US Federal Reserve by making a further 5 basis points worth of hikes in 2018 and 50 more in 2019, taking the policy rate to 3.5 percent at the end of 2018 and 4 percent at the end of 2019.

Remittances of Expats in Kuwait Drop by 13 Percent

The UN Special Rapporteur on contemporary forms of slavery, including its causes and consequences, has sent a questionnaire…

Keywords: Central Bank of Kuwait Kuwait VAT
Category Kuwait News | 2018/04/05 latest update at 9:30 PM
Source : Arabian Business | Photocredit : Arabian Business

68 Views
Comments Add comment

US State Secretary Pompeo kicks off Middle...

Iraq: What next? | Bigger Than Five

Syrian businessman linked to Assad arrested in...

The editorial staff of Kuwait Media would like to give all of its readers from Gulf and Kuwait and the whole world the opportunity to participate actively in the development of the website! If you have something interesting, fun, scandalous - just something worth to be seen from more people. Capture it and share it in the Kuwait Today with a short text.

Do you have information you want to reach our readers?

Send article/s

You can subscribe to our Facebook, Twitter and Google pages or use our RSS feed channel to always read the most important news about Kuwait, the Gulf and the world.