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12.9% growth a shot in the arm for Oman’s economy

12.9% growth a shot in the arm for Oman’s economy

MUSCAT: Oman’s economy has achieved a robust 12.9 per cent growth at OMR6,438.9 million in the first quarter of 2017, against OMR5,703.2 million for the same period of last year.

The growth in gross domestic product (GDP) at market price was mainly driven by a marked rise in crude oil revenue in the international market, shows the monthly report released by the National Centre for Statistics and Information (NCSI) on Monday.

This is the first time that the nominal GDP is showing a growth, within the last two years.

“The nominal GDP was on a declining trend in the last two years. One of the biggest factors for a growth in nominal GDP now is an increase in the average price of crude oil – which moved up to $51.6 per barrel for the first seven months of this year, from $36.4 a barrel for the same period of last year,” said a senior market analyst, who preferred anonymity. Oman produced 205.32 million barrels of oil in the first seven months of 2017, against 213.40 million barrels for the same period of last year.

As a result of a growth in oil price, oil sector GDP soared by 30.6 per cent to OMR2,023.7 million for the first quarter of 2017, from OMR1,549.2 million for the same three-month period of last year. Crude oil sector contribution alone rose by 37.9 per cent to OMR1,707.8 million.

Non-oil sector GDP rose by 5.3 per cent to OMR4,607 million from OMR4,376 million during the three-month period under review. “Non-oil GDP also grew by 5.3 per cent, which was driven by both industrial and service sectors,” noted the analyst.

Manufacturing of basic chemicals grew by 14.9 per cent to OMR261.1 million in the first quarter of 2017, against OMR227.3 million for the same period of last year.