Oman’s GDP reaches $27bln in Q1 2024

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MUSCAT: Oman's Gross Domestic Product (GDP) at current prices reached RO 10.4 billion in value during Q1 2024, showing both promising growth in non-petroleum sectors and a decline in oil-related activities, according to data released by the National Centre for Statistics and Information (NCSI).

The report highlighted a 3.8 per cent decrease in the added value of oil activities compared to the same period in 2023. The petroleum sector, comprising both crude oil and natural gas, saw a notable decline: total petroleum activities fell in value from RO 3,660.5 million in Q1 2023 to RO 3,520.5 million in Q1 2024, a decrease of 3.8 per cent. Crude oil experienced a 4.4 per cent drop, from RO 3,135.5 million to RO 2,996.0 million, while natural gas marginally decreased by 0.1 per cent, from RO 525.0 million to RO 524.4 million.

Conversely, non-petroleum activities exhibited robust growth, increasing by 3.9 per cent from RO 6,920.0 million in Q1 2023 to RO 7,188.5 million in Q1 2024. Key sectors contributing to this growth include agriculture and fishing, which rose by 3.2 per cent, driven by a 5.5 per cent increase in agriculture. Industrial activities increased by 5.5 per cent, with manufacturing leading the charge at a 7.9 per cent increase, notably, refined petroleum products saw a significant 53.6 per cent surge. Service activities grew by 3.3 per cent, supported by a 5.9 per cent rise in wholesale and retail trade and a 5.4 per cent growth in transportation and storage.

The construction sector also saw growth of 2.6 per cent, reaching RO 662.4 million, while public administration and defense increased by 6.6 per cent to RO 1,018.2 million. Education and health sectors notched up gains of 6.1 per cent and 4.7 per cent respectively.

However, some sectors faced downturns, with accommodation and food services plunging by 16.3 per cent, information and communications dropping by 9.9 per cent, and financial and insurance activities slightly declining by 2.1 per cent. Overall, the GDP at producers' prices grew by 1.3 per cent, from RO 10,330.1 million in Q1 2023 to RO 10,460.5 million in Q1 2024. This comprehensive analysis by the NCSI underscores the dynamic shifts within Oman's economy, reflecting both challenges in the oil sector and encouraging growth in diverse non-petroleum industries.

In 2023, Oman’s GDP at current prices increased by 7.4 per cent at the end of Q1 2023, according to the preliminary data issued by the NCSI. The NCSI report revealed that Oman’s GDP at current prices stood at RO 10.4 billion ($27 billion) in Q1 2023, up from RO 9.7 billion ($25.1 billion) in the corresponding of the previous year.

In terms of constant prices, Oman's GDP was valued at RO 9.5 billion in the first quarter of 2024. The report also indicated a 2.4 per cent decrease in the added value of oil activities during this period compared to the first quarter of 2023, highlighting the ongoing challenges in the oil sector amidst fluctuating global oil prices.