Non-oil sector gives a boost to economic growth
Published: 06:08 PM,Aug 17,2024 | EDITED : 10:08 PM,Aug 17,2024
The Ministry of Economy said that the contribution of non-oil activities to the GDP during the first quarter, at constant prices, amounted to RO 6.8 billion.
MUSCAT: The Sultanate of Oman's Gross Domestic Product (GDP) data for the first quarter of this year showed continued expansion in non-oil activities, which were a major source of economic growth, with an increase of by 6.5 per cent for agriculture and fishing activities, 5.7 per cent for industrial activities and 3.9 per cent for service activities compared to the same period in 2023.
The Ministry of Economy said that the contribution of non-oil activities to the GDP during the first quarter, at constant prices, amounted to RO 6.8 billion, while at current prices it amounted to about RO 7.2 billion.
The Ministry indicated that the contribution of agriculture and fishing activities, at constant prices, represents 2.3 per cent of the gross domestic product, industrial activities 20.8 per cent, and service activities 48.2 per cent, and at current prices the contribution of the three sectors to the gross domestic product represents 2.7 per cent, 19.3 per cent and 46.9 per cent, respectively.
The Ministry added that the transportation and storage sector continues its good performance over the years of the tenth plan, recording a real growth of 7.8 per cent during the first quarter of this year, and its contribution to the GDP reached 6.4 per cent, while mining and quarrying activities recorded a growth of 0.9 per cent and its contribution to the GDP reached 0.6 per cent, and the growth of accommodation and food services activities decreased by 12 per cent, and its contribution to the GDP reached 1.5 per cent, and the growth of the education sector rose to 3.2 per cent with a contribution of 4.5 per cent to the GDP.
In other economic sectors, the construction sector has been on the road to recovery since the end of last year, with growth rising to 2.7 per cent in the first quarter of this year compared to a 1.3 per cent decline in the same period last year, which provided significant support to GDP growth given the size of the construction sector’s contribution, which amounted to 8.3 per cent of GDP.
The wholesale and retail trade sector also achieved a growth of 5.8 per cent and its contribution to the GDP increased to 8.1 per cent. The growth of financial and insurance activities increased by 5.6 per cent with a contribution to the GDP of 5.8 per cent. As for oil activities, they witnessed a decline of 2.4 per cent during the first quarter compared to a growth rate of 5.1 per cent during the same period last year, due to the decline in oil production and a decrease in the growth rate of crude oil activity by 3.3 per cent.
The Ministry said that the economic growth data for the first quarter monitors the good performance of the non-oil sectors, which achieved real growth of 4.5 per cent 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 per cent.
The tenth five-year plan (2021-2025) aims to raise the contribution of the transportation and logistics sector to 7.5 per cent, the tourism sector to 3 per cent, the fisheries sector to 2 per cent, the agriculture sector to 1.5 per cent, the mining sector to 0.7 per cent, and the education and scientific research sector to 6.2 per cent.
Forecasts for 2025, the last year of the tenth five-year plan, indicate that the GDP growth rate will continue to rise, supported by the continued momentum of growth in the non-oil sectors, which are expected to grow to about 3.2 per cent. The economic growth prospects are also enhanced by the expected recovery of oil activities during the coming period, in light of the OPEC Plus group’s move to gradually increase oil production starting from the end of 2024.
The Ministry of Economy said that the contribution of non-oil activities to the GDP during the first quarter, at constant prices, amounted to RO 6.8 billion, while at current prices it amounted to about RO 7.2 billion.
The Ministry indicated that the contribution of agriculture and fishing activities, at constant prices, represents 2.3 per cent of the gross domestic product, industrial activities 20.8 per cent, and service activities 48.2 per cent, and at current prices the contribution of the three sectors to the gross domestic product represents 2.7 per cent, 19.3 per cent and 46.9 per cent, respectively.
The Ministry added that the transportation and storage sector continues its good performance over the years of the tenth plan, recording a real growth of 7.8 per cent during the first quarter of this year, and its contribution to the GDP reached 6.4 per cent, while mining and quarrying activities recorded a growth of 0.9 per cent and its contribution to the GDP reached 0.6 per cent, and the growth of accommodation and food services activities decreased by 12 per cent, and its contribution to the GDP reached 1.5 per cent, and the growth of the education sector rose to 3.2 per cent with a contribution of 4.5 per cent to the GDP.
In other economic sectors, the construction sector has been on the road to recovery since the end of last year, with growth rising to 2.7 per cent in the first quarter of this year compared to a 1.3 per cent decline in the same period last year, which provided significant support to GDP growth given the size of the construction sector’s contribution, which amounted to 8.3 per cent of GDP.
The wholesale and retail trade sector also achieved a growth of 5.8 per cent and its contribution to the GDP increased to 8.1 per cent. The growth of financial and insurance activities increased by 5.6 per cent with a contribution to the GDP of 5.8 per cent. As for oil activities, they witnessed a decline of 2.4 per cent during the first quarter compared to a growth rate of 5.1 per cent during the same period last year, due to the decline in oil production and a decrease in the growth rate of crude oil activity by 3.3 per cent.
The Ministry said that the economic growth data for the first quarter monitors the good performance of the non-oil sectors, which achieved real growth of 4.5 per cent 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 per cent.
The tenth five-year plan (2021-2025) aims to raise the contribution of the transportation and logistics sector to 7.5 per cent, the tourism sector to 3 per cent, the fisheries sector to 2 per cent, the agriculture sector to 1.5 per cent, the mining sector to 0.7 per cent, and the education and scientific research sector to 6.2 per cent.
Forecasts for 2025, the last year of the tenth five-year plan, indicate that the GDP growth rate will continue to rise, supported by the continued momentum of growth in the non-oil sectors, which are expected to grow to about 3.2 per cent. The economic growth prospects are also enhanced by the expected recovery of oil activities during the coming period, in light of the OPEC Plus group’s move to gradually increase oil production starting from the end of 2024.