Tuesday 23 / April / 2024
Muscat: Buoyed by rising oil prices, growth of non-oil revenues and supported by reduced spending, the Omani economy was able to achieve many positive results in 2017, preliminary statistics show.
Oil prices, which rose again in 2017, bolstered the state’s public finances. Preliminary statistics indicate that government revenues rose to OMR7.2 billion as at the end of last November 2017, constituting an increase by OMR1 billion from their level in the same period of 2016. The government cut spending to reach OMR10.5 billion compared to OMR11.1 billion in the corresponding period of 2016.
The average price of Oman oil last year grew by 27.8 per cent to $51.3 per barrel, compared to $40.1 per barrel in 2016.
According to the monthly bulletin issued by the National Centre for Statistics and Information (NCSI), figures indicate the Sultanate’s commitment to reduce its oil production to an average of 970,000 barrels per day, compared to more than one million barrels per day in 2016.
The Sultanate’s total production of crude oil and condensates amounted to 354 million barrels in 2017 compared to 367 million barrels in 2016 while the total oil exports amounted to 294 million barrels compared to 321 million barrels exported in 2016.
Oil revenues rose by 31.2 per cent over the same period of 2016 to OMR4.58 billion, compared to OMR3.92 billion in the same period of 2016. Oman’s revenues from gas increased to OMR1.3 billion, registering a growth of 3.9 per cent.
Oil revenues (oil and gas), which amounted to OMR5.4 billion until last November 2017, contributed 74.6 per cent of total revenues and financed 51.2 per cent of total government expenditure.
Preliminary indicators also indicated that the national economy would achieve good growth in 2017. The gross domestic product (GDP) would be able to rise again after falling in 2015 and 2016. According to the latest monthly bulletin issued by NCSI, the GDP at current prices in the first nine months of 2017 rose to OMR20.3 billion compared to OMR18.4 billion in the same period of 2016.
Non-oil activities recorded a growth rate of 4.9 per cent to reach OMR14.7 billion while oil activities jumped 23.9 per cent, exceeding OMR6.2 billion. Manufacturing industries grew by 11.9 per cent to reach OMR1.9 billion.
GDP in 2014 was at best levels at around OMR31.4 billion, but it declined in 2015 to OMR26.8 billion and OMR25.7 billion in 2016.
As for the foreign trade level, commodity exports during the first nine months of 2017 rose to OMR9.1 billion, compared to OMR7.5 billion in the corresponding period of 2016. Imports of goods increased from OMR6.5 billion to OMR7.7 billion.
Non-oil exports until September 2017, recorded the best growth (within commodity exports) by 31.4 per cent to OMR2.3 billion, compared to about OMR1.8 billion in the same period of 2016.
Oil exports increased by 28.8 per cent to OMR5.3 billion compared to OMR4.1 billion in the same period of 2016 while re-exports decreased to OMR1.4 billion, recording a drop of OMR124 million.
This positive performance came at a time when the banking sector recorded positive growth rates due to the increase in total deposits with conventional commercial banks until last November 2017 to OMR18.6 billion, an increase of about OMR400 million from a year ago.
The credit balance granted by the banking sector rose to OMR23.5 billion, a growth of 7.3 per cent from its level in November 2016. Total capital and reserves of conventional commercial banks at the end of last November 2017 stood at OMR4.2 billion.
Inflation during the last year registered a slight growth of 1.7 per cent. The consumer price index (CPI) at the end of last December 2017 reached 105.3 points compared to 103.5 points in December 2016. The prices of food and non-alcoholic beverages, which amounted to 23.9 points in the CPI, rose by the end of last December to 1.8 per cent to 103.6 points, compared to 101.8 points in December 2016.
