Positive Indices for Omani National Economy at Q3,2017

The Omani national economy did well during the third quarter (Q3) 2017. This is very clear from the indices released by the National Center for Statistics and Information, which point out that the added value for the oil and non-oil activities and the GDP has been on the rise. This growth has reflected positively on the State’s public finance which witnessed an increase in gross revenues and public expenditure.

At its ‘ Analysis of the Economic Situation in the Sultanate Q3, 2017’, NCSI said that the Sultanate’s gross domestic product (GDP) at the end of the third quarter of 2017 increased by 10.1 per cent to RO20.3 billion at current prices compared to RO18.5 billion during the same period last year.

Oil activities rose by 23.9 per cent to touch RO6.3 billion at the end of Q3,2017 compared with RO5 billion at the end of the third quarter of 2016. The remarkable increase in crude oil added value of about 27.8% contributed to the rise in the added value for the oil activities which stood at about RO5.3 billion at the end of Q3, 2017 compared to RO4.1 billion during the same period 2016.

The non ´┐Żoil activities grew by 4.9% to RO14.7 billion as compared with the same period in 2016. The added value for the service activates increased by 5.7%, industrial activities 2.8% and agriculture & fisheries activities 5.4% respectively.

As for the state’s public finance, the states deficit declined at the end of Q3, 2017 by 32.2% to about RO3 billion compared to RO4.4 during the same period in 2016.

The gross revenues increased by 20% to hit RO6 billion at the end of Q3, 2017 as compared to RO5 billion at the end of Q3, 2016.

The public expenditure upped by 4% at the end of Q3, 2017 to RO8.4 billion. The growth of the current expenditure by 5.2% contributed to the growth of the gross expenditure, especially the current expenditure constitutes 71.7% of the gross public expenditure.

The interests over loans grew by 286.3% to RO197.8 million at the end of Q3, 2017 compared to RO51.2 million at the end of Q3, 2016. The investment expenditure also grew by 7.2%. on the contrary, the contribution and subsidy decreased by 23.1%.

At the end of Q3, 2017, the oil revenues grew by 27.3% compared to 3.2% for the non-oil revenues. The total revenues from the corporate income tax stood at RO332.1; a declined by 6.6% compared to the same period in 2016.

As for the foreign trade indices, the Sultanate’s trade balance grew by 48.6% to RO1.4 billion compared to RO944.3 million at Q3, 2016. The surplus is attributed to the growth of the commodities imports to RO7.7 billion compared to RO6.6 billion in the corresponding period in 2016.

The value of oil exports constituted 58.6% of the total value of exports as the total crude oil exports grew by 21.2% to RO4.3 billion. The exports of LNG grew by 63.3%.

The value of non-oil exports stood at RO2.4 billion at the end of Q3, 2017; a growth by 31.4% compared to the same period in 2016.

The exports of the mineral products have achieved the highest growth rate as of the end of Q3, 2017 (about 51.1%) compared to the same period in 2016, followed by chemical industries products (41.9%).

As for the commodity imports, the machinery, electrical appliances and their parts constituted 21.1% of the total value of the Sultanate’s imports. The transport equipment imports witnessed the highest growth rate in Q3,2017 ( a growth by 75.7%) , followed by natural or artificial pearls and precious stones (46.3%). 70.5% of the total commodity imports to the Sultanate by the end of Q3 2017 came through the marine ports customs.

U.A.E topped the list of importing and exporting countries with the Sultanate with 22.1% of the total non-oil exports. 42.4% of the Sultanate’s commodity imports were from U.A.E.

The Sultanate’s gross commodity imports from U.S.A as of the end of Q3,2017 grew by 140.2% compared to the same period in 2016.

As for the monetary indices, the gross domestic liquidity as of the end of Q3, 2017 grew by 3.7% to about RO16.1 billion compared to RO15.5 billion during the same period in 2016.

The money supply declined by 2.3% to about RO5 billion as of the end of Q3, 2017 compared to RO5.2 billion as of the end of Q3, 2016.

The private sector deposits grew by 5.6% to about RO13.8 billion compared to RO13.1 billion during the same period in 2016.

The value of gross loans and finance provided by the commercial banks and Islamic windows grew by 5.7% to about RO23.1 billion. The average interest rate on the loans stood at 5% as of the end of Q3, 2017 compared to 4.8% as of the end of Q3, 2017 (RO21.8 billion).

The gross value of the foreign assets at the Central Bank of Oman as of the end of Q3, 2017 decreased by RO7.6 billion during the same period of 2016.

The purchasing power of the Omani Riyal decreased by 1.1% as the real exchange rate recorded 101.1 points as of the end of Q3, 2017 compared to 102.2 points as of the end of Q3, 2016.

Source: Oman News Agency