Oman's economy grows by 4% in eighth five-year plan

Business Saturday 03/September/2016 17:11 PM
By: Times News Service
Oman's economy grows by 4% in eighth five-year plan

Muscat: During the Eighth Five-Year Development Plan, Oman’s economy achieved four per cent growth in the current price despite the decline in oil prices since mid-2014, according to the National Centre for Statistics and Information (NCSI)
The statistics prepared based on several bulletins issued by the National Centre for Statistics and Information, shows out that during the Eighth Five-Year Plan, gross domestic product (GDP) at the current prices grew by four per cent while the estimated growth rate was set at six per cent. The growth rate was negatively affected by the recent oil price drop.
The statistical data pointed out that during the past three years, the inflation rate settled at around one per cent. The Government of Oman increased public expenditure from OMR33.8 billion in the Seventh Five-Year Plan to OMR67.1 billion in the Eighth Five-Year Plan.
Gross domestic product (GDP) at the current prices witnessed variable growth rates over the past five years, the highest in 2014 at OMR31.4 billion and the lowest in 2011 at OMR26.7 billion. The public expenditure also grew to OMR29.3 billion in 2012 and OMR30 billion in 2013.
As per the latest NCSI bulletin (August 2016), last year's GDP at the current prices stood at OMR26.8 billion. The oil sector GDP at the current price grew by 2.6 per cent against 8.7 per cent for non-oil sector. At the beginning of the five-year plan, the oil sector witnessed a remarkable growth; OMR10.3 billion in 2010 to OMR15.3 billion in 2012. It registered a slight decline in 2013 to OMR15.2 billion in 2013, OMR14.8 billion in 2014 and OMR9.1 billion in 2015.
On the contrary, the GDP for non-oil sector during the past five years did not register any decline. Rather, it grew by 11.7 per cent from OMR14.3 in 2011 to OMR16 billion in 2012. It continued its growth to OMR17.2 billion in 2013, OMR18.9 billion in 2014 and then to OMR19.1 billion in 2015. The service sector contributed 70 per cent of the GDP for non-oil sector.
As per the statistics from the official statistical data over the past year, the GDP for the service sector in 2011 stood at more than OMR9 billion and then it grew to OMR10.4 billion in 2012, OMR11.3 billion in 2013, OMR12.8 billion in 2014 and OMR13.4 billion in 2015.
The industrial sector registered continuous growth over the Eighth Five-Year Plan from OMR4.9 billion in 2011 to OMR5.3 billion in 2015 benefiting from the scores of incentives and facilities provided by the Sultanate's government to industrial sectors and the establishment of industrial estates in the different parts of the Sultanate.