Oman's gross domestic product grew 18.3 per cent in the first quarter of 2012 on the back of higher oil prices, according to official data announced on Sunday.
The sultanate's GDP at current prices is estimated to be about RO7.23bn in the first quarter, compared to RO6.12bn during the same period in 2011.
According to Dr Fabio Scacciavillani, chief economist at Oman Investment Fund, growth in nominal GDP is the result of the significant rise in year-on-year oil prices in the first quarter.
He added, "However, production has been more or less stable. With oil prices at a decent level and no budgetary issues, the economic environment in Oman is pretty stable.
"If oil prices remain stable at the current level, we could continue to see double-digit nominal GDP growth this year."
Oman sold its crude oil at US$109.1 per barrel during the first quarter of 2012 compared to US$88.3 per barrel in the same period last year. Oman's oil production grew 1.3 per cent in the first quarter to reach 80.9mn barrels compared to 79.8mn barrels in the same period of 2011.
Oman's non-oil GDP is estimated to register about 11.3 per cent growth in its added value at the end of the first quarter.
Dr Scacciavillani said, "The non-oil sectors seem to be stable. On oil, real and nominal GDP growth can show big variations, but non-oil GDP figures in nominal and real terms tend to be closer. We are likely to see good growth in real terms unless some major negative events take place in the world."
He said that if Greece is forced out of the eurozone then it will create turbulence at the global level.
"Oman has developed enough capacity to absorb these kind of shocks. The budget is in a healthy position, public projects are at an advanced stage, banks are in good condition. So Oman is in better position than so many other countries to counter these challenges," Dr Scacciavillani added.
© Muscat Daily 2012
