How does Kuwait trade with other countries, what are the exports and imports, give examples of countries that Kuwait trade with?
KUWAIT
Kuwait’s economy, which is the petroleum-based economy, relies on its abundant resource (oil) to realize various kinds of political-economic objectives. From the study of Kuwait’s trade, we learn that Kuwait trade with some countries; however, the size of its trade with some countries is large in comparison to the other countries. For instance, destination, of most of Kuwait’s, exports is India, whereas China is the largest importer of goods to Kuwait (World Integrated Trade Solution).
EXPORTS of KUWAIT
As per statistics, the top ten (10) export countries (countries to which Kuwait exports its goods and services) is 1) India, 2) Saudi Arabia, 3) the United Arab Emirates, 4) China, 5) Iraq, 6) Qatar, 7) Russia, 8) Oman 9) Pakistan and 10) the United States. To these countries, Kuwait exports various kinds of goods and services. However, the product that is exported mostly to these countries is an Oil and Mineral Fuels. In the year 2016, Kuwait exported Oil and Mineral Fuel of worth $41,451,916,672 to other countries. The second largest export of Kuwait is Organic Chemicals and monetary size of their export, in year2016, was $1,160,646,761 (Global Edge).
Other than Oil, Mineral Fuel, and Organic Chemicals, Kuwait also exports Motor Vehicles, Motor Vehicle parts, plastics, industrial machinery, dairy products, fertilizers, expensive metals, and precious stones. These are the major exports of Kuwait, and there are few countries that receive these exports more than the others (Global Edge).
IMPORTS of KUWAIT
There are some items/products/services, which Kuwait imports. Some of the products/items its imports are those products or items, which Kuwait also produces. The top ten importers, to Kuwait, is 1) China, 2) the United States, 3) United Arab Emirates, 4) Japan, 5) Germany, 6) India, 7) Saudi Arabia, 8) Italy, 9) South Korea and 10) the United Kingdom. It is very from the list of countries that export their goods or products to Kuwait that most the exporting countries, which goods/products Kuwait export, have a trade surplus and only a few countries have a deficit with Kuwait (Global Edge).
For instance, China has exported products/item worth $4, 667, 047, 585, whereas it as imported $501, 149, 630 worth of goods/products from Kuwait. Similarly, the United States has imported goods of worth $12, 067, 327 from Kuwait, whereas, it has exported goods/products of worth $2, 948, 175, 312 of goods/products (Global Edge).
ACCUMULATED STATISTICS of KUWAIT
According to the statistical evidence, about trade, from the year 2016, total exports of Kuwait were about $77, 062, 160, 974. The size of imports (goods/products that other countries exported to Kuwait) was $30, 820, 178, 692; whereas the size of exports was $46,241,982,282. The statistics make it apparent that Kuwait enjoys trade surplus, even though against some countries, it suffers a huge trade deficit. We also learn, from the investigation of statistical evidence that exports of goods and services are 48.23% of Kuwait’s GDP, whereas the imports are 46.43% of Kuwait’s GDP (the year 2016). It implies that trade is a major component of Kuwait’s economic strategy and through trade; Kuwait intends to realize various kinds of political-economic and social-economic objectives, in both short and long run. However, changes in world trade, because of the impending trade-war between the major economies may affect both trade and economy’s health (of Kuwait) (Oxford Business Group).
Another interesting development is that Kuwait is attempting to diversify its economy, which is primarily based on petroleum. In recent years, oil prices have dwindled significantly, which has adversely affected economic growth of Kuwait. The dwindle in oil prices, in the international market, has strongly jolted Kuwait’s economy and compelled it to emphasize on other aspects of the economy so that the vulnerability of an economy may reduce. However, the process of diversification of the economy would be slow and cumbersome (Oxford Business Group).
Work Cited
Global Edge. “Kuwait: Trade Statistics.” Global Edge. Global Edge, 21 December 2018. Web. 24 June 2018. https://globaledge.msu.edu/countries/kuwait/tradestats.
Oxford Business Group. “Kuwait’s economic diversification to invigorate private sector.” Oxford Business Group. Oxford Business Group, 1 January 2018. Web. 24 June 2018. https://oxfordbusinessgroup.com/overview/gaining-momentum-programme-economic-diversification-under-way-should-invigorate-private-sector.
World Integrated Trade Solution. “Kuwait trade statistics.” World Integrated Trade Solution. World Integrated Trade Solution, 24 June 2018. Web. 24 June 2018. https://wits.worldbank.org/CountryProfile/en/KWT.
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