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Oman’s nominal GDP surpasses pre-pandemic level

27 Sep 2021 By GULAM ALI KHAN

Wholesale and retail trade recorded 19% growth to reach RO1.364bn in the first half of 2021

Muscat – Oman’s nominal GDP – gross domestic product at current market prices – greatly surpassed its pre-pandemic level after growing rapidly in the first half of this year, official data released on Monday indicated.

Supported by stimulus measures, reopening of economic activities and higher oil prices, the sultanate’s nominal GDP grew at a solid 10.1 per cent rate during the January-June period of 2021 in another sign that the country is on a sustained recovery path from the pandemic recession.

Nominal GDP surged to RO15.301bn in the first half of 2021 compared to RO13.898bn in the same period of 2020 and RO14.049bn in the first half of 2019, according to data released by the National Centre for Statistics and Information (NCSI).

The data shows that Oman’s economic recovery is broad-based with all major sectors – oil and gas, industry, services, and agriculture and fisheries – recording robust growth during the first half of the year.

Hydrocarbon GDP increased by 8.7 per cent to RO4.428bn in the first half of 2021 from RO4.074bn in the same period of last year.

On the back of higher oil prices in 2021, the value of oil production rose 11 per cent to RO3.723bn from RO3.354mn in the same period a year ago, while the value of natural gas output decreased two per cent to RO705mn.

Earlier this month, the International Monetary Fund stated that Oman’s economy is set to recover in 2021, with real GDP expected to grow by 2.5 per cent this year and 2.8 per cent in 2022.

Non-oil GDP

The sultanate’s non-oil GDP jumped 11.1 per cent to RO11.456bn in the first half of this year from RO10.309bn recorded in the same period a year ago. Among non-oil sectors, the industrial sector output grew by 12.1 per cent to RO3.122bn, while the services sector grew by 11 per cent to RO7.912bn.

Within the industrial sector, manufacturing bounced back with more than 34 per cent growth to RO1.338bn in the first half of 2021, while mining and quarrying grew 7.7 per cent to RO114.5mn.

Construction activities, however, remained 3.3 per cent lower at RO1.235bn during the January–June period of 2021 against RO1.278bn in the corresponding period of 2020.

Within the services sector, wholesale and retail trade recorded 19 per cent growth to reach RO1.364bn in the first half of 2021 from RO1.147bn in same period of 2020. Financial and insurance sector activities also grew by 11.5 per cent to RO1.05bn.

Agriculture and fisheries sector activities recorded a seven per cent year-on-year growth to reach RO421.2mn in the first half of 2021.

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