Kuwait’s GDP recorded a marginal growth of around 2.3% in 2013 , subsequent to posting robust economic growth figures in 2011 and 2012 driven by elevated price levels and higher oil output which owes to the stabilization in oil supply accompanied by a drop in prices which averaged around$105.9/b during the year , said a specilized economic report compiled by KAMCO research.

Meanwhile , there was limited activity in the non-oil sector due to political deadlock that almost stalled developmental projects aimed at expanding the nonoil sectors , added the report.

Credit facilities extended by Kuwaiti banks during Q3-14 sustained the upward momentum seen during last year to record a quarterly growth of 1.27% and stand at KWD30.62 billion at the end of Sep-2014 , showed the report.

Personal facilities and credit to the real estate sector represent the key drivers behind the growth in total credit, together adding around KWD285 million or around 74% of the total credit growth in Q3-14 , the report indicated.

Growth rate in Personal Facilities marginally slowed down as compared to the last period to post an increase of 2.3% during Q3-14. While, credit to real estate sector nearly maintained the same level of last quarter to grow by a marginal 0.2% during Q3-14 , said the report.

Despite the risk-averseness of Banks and the conservative lending policies, along with the restructuring of corporate debt and the ongoing delay in implementing a dozen of infrastructure and economic projects, the credit market has witnessed signs of recovery in 2013 and 9M-14 that will most likely continue through 2014/2015 driven by the gradual restoration of confidence in the private sector & the recovery of the property market and the local bourse , noted the report.

Following the upward trend seen over the last three quarters,Kuwait’s broad measure of money supply (M2) dropped by 3.8% in Q3-14 or KWD1.3 billion, to stand at KWD33 Bn as of Sep-14.