So, Kuwait’s trade surplus with Japan just took another dip in July—down 15.2% from last year, landing at about 49 billion yen (give or take $311 million). That’s six months in a row; it’s been sliding, mostly because Kuwaiti exports are losing steam. Japan‘s Finance Ministry revealed the information, which came as no surprise.
And, yeah, the export numbers? Not pretty. Kuwait shipped out 5.9% less stuff to Japan—just 77.5 billion yen’s worth (around $504 million). The decrease is mostly about less oil and refined products heading east—Kuwait’s bread and butter when it comes to Japan. Apparently, folks in Japan just aren’t as thirsty for Kuwaiti crude lately.
However, when the situation is reversed, the situation changes dramatically. Kuwait’s been buying more from Japan—15.8% more, actually, up to 28.5 billion yen ($180 million). That’s the eighth month in a row imports have jumped. Kuwait is purchasing more technology, machinery, and cars, resembling a shopping spree as it attempts to reduce its reliance on oil. It’s important to diversify, isn’t it?
It’s not just Kuwait in this boat, either. The whole Middle East saw its trade surplus with Japan shrink by a whopping 25.1%—down to 550.4 billion yen ($3.7 billion). Exports dropped 18.1%, with crude and other resources taking the biggest hit (down 19%). Therefore, it can be said that Kuwait is not exactly a regional powerhouse.
However, despite this challenging period, Kuwait has maintained a trade surplus with Japan for over 17 years. That’s staying power, my friend. These two have been at the table for a while.
Looking ahead? Indeed, Kuwait finds itself at a pivotal juncture. With exports slumping and imports rising, maybe it’s time for a strategy shake-up. There’s talk of new partnerships—tech, green energy, infrastructure—you name it. This is all part of their ongoing Vision 2035 initiative.
In summary, Kuwait’s next steps will significantly depend on the outcome of its relationship with Japan. The dance between these two economies isn’t over yet. Stay tuned.
