Hydrocarbon GDP jumps 70.9%, Non-oil GDP grows 14.9%, Manufacturing expands 65%, Services sector up 11.2%
Muscat – Oman’s economy is witnessing a remarkable expansion this year as elevated oil prices, increased hydrocarbon production and stronger non-oil growth have provided a much needed boost to the country’s GDP.
The sultanate’s nominal GDP – gross domestic product at current market prices – recorded a whopping 32.4 per cent growth in the first half of 2022, the fastest economic expansion in over a decade, official data released on Tuesday showed.
Nominal GDP surged to RO20.261bn in the first half of 2022 compared to RO15.302bn in the same period of 2021, according to data released by National Centre for Statistics and Information.
The GDP figures show that Oman’s economic growth is broad-based with all major sectors – oil and gas, industry, mining and services – recording robust expansion during the January–June period this year.
Supported by an oil price surge and higher gas production, hydrocarbon GDP jumped 70.9 per cent to RO7.848bn in the first half of the year from RO4.591bn in the same period last year.
The value of Oman’s oil production surged 76.8 per cent to RO6.862bn in the first half of 2022 against RO3.881bn in the corresponding period of 2021, while the value of natural gas output increased 38.8 per cent to RO986mn.
International Monetary Fund recently said Oman’s economy is strengthening and inflation has been contained. The sultanate’s real GDP is projected to grow about 4.5 per cent in 2022, benefiting from increased hydrocarbon output and continued recovery of non-oil activities.
Last week, global rating agency Moody’s said Oman and Qatar are two GCC countries that are likely to see the most significant improvements in their fiscal and economic strength due to the current oil price boost.
Oman’s non-oil nominal GDP grew 14.9 per cent to RO13.106bn in the first half of this year from RO11.409bn recorded a year ago. Among non-oil sectors, the industrial sector’s output grew 26.2 per cent to RO3.969bn, while the services sector grew 11.2 per cent to RO8.720bn.
In the industrial sector, manufacturing expanded more than 65 per cent to RO2.375bn in the first half of 2022, while mining and quarrying grew 16.5 per cent to nearly RO115mn.
Construction sector activities, however, remained 13 per cent lower at RO1.052bn during the January-June period of 2022 against RO1.208bn recorded in the corresponding period a year ago.
Within the services sector, wholesale and retail trade recorded 10.6 per cent growth to RO1.538bn in the first half of 2022 against RO1.391bn in same period last year. Financial and insurance sector activities also surged 37 per cent to RO1.415bn.
The agriculture and fisheries sector decreased 1.6 per cent year-on-year to reach RO417mn in the first half of 2022.
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