The hydrocarbon sector’s contribution to the nominal Gross Domestic Product (GDP) grew a significant 23.9 per cent during the first nine months (January-September) of last year, against a contraction of 29.4 per cent during the corresponding period of 2016, according to figures released by the Central Bank of Oman (CBO).
The apex bank credited this upturn to the rapid increase in oil prices during this period, although production had dipped 3.7 per cent in keeping with Oman’s obligations under an Opec/non-Opec pact to curtain global output.
“The share of the hydrocarbon sector to the nominal GDP also increased by 3.4 percentage points to 30.7 per cent (RO 6.2 billion) during January-September 2017,” the Central Bank stated in its newly released published ‘Mid-Year Review of the Omani Economy 2017’, issued here this week. In effect, the hydrocarbon sector contributed 64.4 per cent to the incremental growth in nominal GDP during the first nine months of 2017, it noted.
The figures underscore the Oil & Gas sector’s continued importance in fuelling economic growth notwithstanding an aggressive campaign by the Omani government to diversify the economy away from its long dependence on hydrocarbons.
Average Omani crude prices rose sharply to $50.6 per barrel during the January-September 2017 period, up from $38.3 a barrel during the same period a year ago, the report said.
Average daily production, on the other hand, declined 3.4 per cent to 969.3K barrels from 1,003.2K barrels during this period in line with the Sultanate’s commitments under the global production reduction pact.
Within the hydrocarbon sector, crude oil continued to remain the predominant contributor with a 25.9 per cent value addition to the nominal GDP, the CBO said.
In contrast, the contribution of natural gas increased 4.8 per cent in value addition. On the other hand, the non-oil sector’s contribution to nominal GDP increased 4.9 per cent during the January-September 2017 period, “on the back of support from the oil sector and with diversification efforts starting to produce some positive results”, the mid-term report noted.
“Although the share of the non-hydrocarbon sector in total nominal GDP declined on account of the sharp recovery in oil prices, it still remained the major contributor with a 72.3 per cent share. The non-hydrocarbon sector also contributed about 36.5 per cent to the incremental nominal GDP during this period, despite a steep jump in the nominal GDP emanating from the hydrocarbon sector,” the apex bank stated.
Driving growth within the non-hydrocarbon sector during January-September 2017 were the services sector and non-oil industrial sector which grew by 5.7 per cent and 2.8 per cent respectively with a contribution of 50.7 per cent and 19.6 per cent to the overall nominal GDP. Agriculture and fishing also registered positive growth of 5.4 per cent although its contribution to nominal GDP remained at around 2 per cent reflecting.
Manufacturing activities, with a growth of 11.9 per cent, lifted the non-oil industrial sectors share by 3.8 percentage points to 47.2 per cent. The electricity & water supply and mining & quarrying segments also grew 6.6 per cent and 1.1 per cent respectively, contributing 11.2 per cent and 2.6 per cent to the nominal GDP.
Construction activities contracted 7.0 per cent with its contribution to value addition in the manufacturing sector declining by 4.1 percentage points to 39.1 per cent.
The apex bank credited this upturn to the rapid increase in oil prices during this period, although production had dipped 3.7 per cent in keeping with Oman’s obligations under an Opec/non-Opec pact to curtain global output.
“The share of the hydrocarbon sector to the nominal GDP also increased by 3.4 percentage points to 30.7 per cent (RO 6.2 billion) during January-September 2017,” the Central Bank stated in its newly released published ‘Mid-Year Review of the Omani Economy 2017’, issued here this week. In effect, the hydrocarbon sector contributed 64.4 per cent to the incremental growth in nominal GDP during the first nine months of 2017, it noted.
The figures underscore the Oil & Gas sector’s continued importance in fuelling economic growth notwithstanding an aggressive campaign by the Omani government to diversify the economy away from its long dependence on hydrocarbons.
Average Omani crude prices rose sharply to $50.6 per barrel during the January-September 2017 period, up from $38.3 a barrel during the same period a year ago, the report said.
Average daily production, on the other hand, declined 3.4 per cent to 969.3K barrels from 1,003.2K barrels during this period in line with the Sultanate’s commitments under the global production reduction pact.
Within the hydrocarbon sector, crude oil continued to remain the predominant contributor with a 25.9 per cent value addition to the nominal GDP, the CBO said.
In contrast, the contribution of natural gas increased 4.8 per cent in value addition. On the other hand, the non-oil sector’s contribution to nominal GDP increased 4.9 per cent during the January-September 2017 period, “on the back of support from the oil sector and with diversification efforts starting to produce some positive results”, the mid-term report noted.
“Although the share of the non-hydrocarbon sector in total nominal GDP declined on account of the sharp recovery in oil prices, it still remained the major contributor with a 72.3 per cent share. The non-hydrocarbon sector also contributed about 36.5 per cent to the incremental nominal GDP during this period, despite a steep jump in the nominal GDP emanating from the hydrocarbon sector,” the apex bank stated.
Driving growth within the non-hydrocarbon sector during January-September 2017 were the services sector and non-oil industrial sector which grew by 5.7 per cent and 2.8 per cent respectively with a contribution of 50.7 per cent and 19.6 per cent to the overall nominal GDP. Agriculture and fishing also registered positive growth of 5.4 per cent although its contribution to nominal GDP remained at around 2 per cent reflecting.
Manufacturing activities, with a growth of 11.9 per cent, lifted the non-oil industrial sectors share by 3.8 percentage points to 47.2 per cent. The electricity & water supply and mining & quarrying segments also grew 6.6 per cent and 1.1 per cent respectively, contributing 11.2 per cent and 2.6 per cent to the nominal GDP.
Construction activities contracted 7.0 per cent with its contribution to value addition in the manufacturing sector declining by 4.1 percentage points to 39.1 per cent.
Source Link: www.omanobserver.om
POST A COMMENT
