Oman’s GDP at current prices in H1 stands at RO 20.349 billion
Published: 03:09 PM,Sep 23,2023 | EDITED : 07:09 PM,Sep 23,2023
MUSCAT, SEPT 23
Oman's gross domestic product (GDP) at current prices for the first half of 2023 reached RO 20.349 billion, a slight decrease from the RO 20.889 billion recorded in the same period of 2022. According to the preliminary statistics from the National Centre for Statistics and Information (NCSI), the Q2 2023 saw a significant decline in overall GDP, with RO 10.085 billion compared to RO 11.146 billion in Q2 2022, reflecting a decrease of 9.5%.
The petroleum sector, a crucial component of Oman's economy, experienced a decline in Q2 2023. Petroleum activities generated RO 3.646 billion, a decrease of 18.3% compared to RO 4.460 billion in Q2 2022. Within the petroleum sector, crude oil contributed RO 3.170 billion in Q2 2023, down from RO 3.936 billion in Q2 2022. Similarly, natural gas revenue declined to RO 475 million in Q2 2023, compared to RO 523 million in Q2 2022.
On the other hand, non-petroleum activities remained relatively stable in Q2 2023. Total non-petroleum activities for the quarter amounted to RO 6.861 billion, slightly lower than the RO 7.121 billion recorded in Q2 2022. Breaking down the non-petroleum activities, revenue from agriculture, forestry, and fishing activities totaled RO 205 million in Q2 2023, a slight decline from the RO 215 million recorded in Q2 2022.
The industrial sector — which include mining and quarrying, manufacturing, electricity and water supply and construction — experienced a significant contraction in Q2 2023. Revenue from industry activities amounted to RO 1.630 billion, reflecting a decline of 26.7% compared to RO 2.225 billion in Q2 2022.
Service activities demonstrated positive growth in Q2 2023. Total revenue from service activities reached RO 5.024 billion, an increase of 7.3% compared to RO 4.680 billion in Q2 2022. Notably, the financial and insurance sector within service activities experienced substantial growth, with revenue of RO 920 million in Q2 2023, up from RO 706 million in Q2 2022, representing a growth rate of 30.4%.
Additionally, the telecommunication and IT sector showed positive performance, with revenue of RO 119.1 million, reflecting a growth rate of 23.6%. Other gainers in the service sector include public administration and defence with RO 880 million, or 11.5% increase from Q2 2022 with RO 789 million. Accommodation and food service sector recorded 10.5% increase with RO 178 million in Q2 this year, up from RO 161 million during the same period last year.
Lastly, financial intermediation services indirectly measured witnessed a decline. Revenue in this sector amounted to -RO 230 million in Q2 2023, compared to -RO 225 million in Q2 2022, indicating a decrease of 2.5%.
Current prices refer to the actual prices of goods and services at a given point in time. They reflect the prevailing market conditions, including inflationary factors. On the other hand, constant prices, also known as real prices, are adjusted for inflation or changes in the general price level. They aim to remove the effect of price changes over time, allowing for meaningful comparisons across different time periods. Constant prices are often used to analyse long-term trends and to measure real economic growth.
Oman's gross domestic product (GDP) at current prices for the first half of 2023 reached RO 20.349 billion, a slight decrease from the RO 20.889 billion recorded in the same period of 2022. According to the preliminary statistics from the National Centre for Statistics and Information (NCSI), the Q2 2023 saw a significant decline in overall GDP, with RO 10.085 billion compared to RO 11.146 billion in Q2 2022, reflecting a decrease of 9.5%.
The petroleum sector, a crucial component of Oman's economy, experienced a decline in Q2 2023. Petroleum activities generated RO 3.646 billion, a decrease of 18.3% compared to RO 4.460 billion in Q2 2022. Within the petroleum sector, crude oil contributed RO 3.170 billion in Q2 2023, down from RO 3.936 billion in Q2 2022. Similarly, natural gas revenue declined to RO 475 million in Q2 2023, compared to RO 523 million in Q2 2022.
On the other hand, non-petroleum activities remained relatively stable in Q2 2023. Total non-petroleum activities for the quarter amounted to RO 6.861 billion, slightly lower than the RO 7.121 billion recorded in Q2 2022. Breaking down the non-petroleum activities, revenue from agriculture, forestry, and fishing activities totaled RO 205 million in Q2 2023, a slight decline from the RO 215 million recorded in Q2 2022.
The industrial sector — which include mining and quarrying, manufacturing, electricity and water supply and construction — experienced a significant contraction in Q2 2023. Revenue from industry activities amounted to RO 1.630 billion, reflecting a decline of 26.7% compared to RO 2.225 billion in Q2 2022.
Service activities demonstrated positive growth in Q2 2023. Total revenue from service activities reached RO 5.024 billion, an increase of 7.3% compared to RO 4.680 billion in Q2 2022. Notably, the financial and insurance sector within service activities experienced substantial growth, with revenue of RO 920 million in Q2 2023, up from RO 706 million in Q2 2022, representing a growth rate of 30.4%.
Additionally, the telecommunication and IT sector showed positive performance, with revenue of RO 119.1 million, reflecting a growth rate of 23.6%. Other gainers in the service sector include public administration and defence with RO 880 million, or 11.5% increase from Q2 2022 with RO 789 million. Accommodation and food service sector recorded 10.5% increase with RO 178 million in Q2 this year, up from RO 161 million during the same period last year.
Lastly, financial intermediation services indirectly measured witnessed a decline. Revenue in this sector amounted to -RO 230 million in Q2 2023, compared to -RO 225 million in Q2 2022, indicating a decrease of 2.5%.
Current prices refer to the actual prices of goods and services at a given point in time. They reflect the prevailing market conditions, including inflationary factors. On the other hand, constant prices, also known as real prices, are adjusted for inflation or changes in the general price level. They aim to remove the effect of price changes over time, allowing for meaningful comparisons across different time periods. Constant prices are often used to analyse long-term trends and to measure real economic growth.