Muscat: The Sultanate of Oman’s GDP during the first quarter of this year showed continued expansion of non-oil activities, which was a major source of economic growth.

The Ministry of Economy explained that the contribution of non-oil activities to the GDP during the first quarter, at constant prices, amounted to OMR6.8 billion, while at current prices it amounted to about OMR7.2 billion.

The growth increased by 6.5 percent for agriculture, forestry and fishing activities, 5.7 percent for industrial activities and 3.9 percent for service activities compared to the same period in 2023.

The Ministry indicated that the contribution of agriculture, forestry and fishing activities, at constant prices, represents 2.3 percent of the GDP, industrial activities 20.8 percent, and service activities 48.2 percent, and at current prices the contribution of the three sectors to the GDP represents 2.7 percent, 19.3 percent and 46.9 percent, respectively.

The Ministry of Economy added that the transportation and storage sector continues the good work achieved over the years of the Tenth Plan, and recorded a real growth of 7.8 percent during the first quarter of this year, and its contribution to the GDP amounted to 6.4 percent, while mining and quarrying activities recorded a growth of 0.9 percent and its contribution to the GDP amounted to 0.6 percent, and the growth of accommodation and food services activities decreased by 12 percent, and its contribution to the GDP amounted to 1.5 percent, and the growth of the education sector increased to 3.2 percent with a contribution of 4.5 percent to the GDP.

In other economic sectors, the construction sector has been recovering since the end of last year, with its growth rising by 2.7 percent during the first quarter of this year compared to a decline of 1.3 percent during the same period last year, which represented an important support for GDP growth given the size of the construction sector’s contribution, which amounted to 8.3 percent of GDP.

The wholesale and retail trade sector also achieved a growth of 5.8 percent and its contribution to the GDP increased to 8.1 percent, and the growth of financial and insurance activities increased by 5.6 percent with a contribution to GDP of 5.8 percent, while oil activities witnessed a decline of 2.4 percent during the first quarter compared to a growth rate of 5.1 percent during the same period last year, due to the decline in oil production and the decline in the growth rate of crude oil activity by 3.3 percent.

The Ministry of Economy explained that the economic growth data for the first quarter monitors the good performance of non-oil sectors, which achieved real growth of 4.5 percent compared to the same period in 2023, which balanced the effects of the decline in the added value of oil activities, and contributed to the continued real growth of the Omani economy at a rate of 1.7 percent.

The Tenth Five-Year Plan (2021-2025) aims to raise the contribution of the transport and logistics sector to 7.5 percent, tourism sector to 3 percent, fisheries sector to 2 percent, agriculture sector to 1.5 percent, mining sector to 0.7 percent, and education and scientific research sector to 6.2 percent.

Expectations during 2025, which is the last year of the Tenth Five-Year Plan, indicate a continued rise in the GDP growth rate, supported by the continued growth momentum in non-oil sectors, which are expected to grow to about 3.2 percent.

The prospects for economic growth are also enhanced by the expected recovery of oil activities during the coming period, in light of the OPEC Plus group’s orientation to gradually increase oil production starting from the end of 2024.

--

 

© Muscat Media Group Provided by SyndiGate Media Inc. (Syndigate.info).