Oman’s Q2 GDP Contracts by 9.5% to $26.3 Billion Amidst Decline in Oil Activities
Riyadh, September 24, 2023 – Oman’s gross domestic product (GDP) experienced a notable 9.5 percent decline in the second quarter of 2023 compared to the same period in the previous year, primarily attributed to a significant drop in oil-related activities.
According to data from the National Center for Statistics and Information (NCSI), Oman’s GDP at current prices fell to 10.08 billion Omani rials ($26.3 billion) in the second quarter, down from 11.14 billion rials recorded during the same period in the previous year.
The Oman News Agency, citing NCSI data, reported that the primary reason for this decline was an 18.3 percent decrease in the value of oil-related activities during the second quarter, which dropped from 4.46 billion rials in the year-ago period to 3.64 billion rials.
A more detailed breakdown of the figures revealed that the value of crude oil activities slumped by 19.5 percent to 3.17 billion rials, while natural gas activities descended by 9.2 percent to 475.6 million rials.
In the non-oil sector, revenue in the second quarter saw a 3.6 percent decline, falling from 7.12 million rials in the corresponding period of the previous year to 6.86 million rials.
Furthermore, earnings from industrial activities also experienced a notable decrease, totaling 1.63 million rials in the second quarter, compared to 2.22 billion rials reported between April and June of 2022.
During the second quarter of 2023, agricultural, forestry, and fishing activities contributed 206 million rials to the GDP, while services accounted for 5.02 billion rials.
Additionally, Oman’s GDP at current prices for the first half of 2023 witnessed a 2.4 percent decline, reaching 20.39 billion rials compared to the same period in the previous year.
In contrast to the economic challenges, Oman’s banking sector displayed resilience and growth. The sector witnessed an 8.7 percent increase in credit and deposits, reaching 30.3 billion rials in the first seven months of the year. According to the country’s central bank, credit extended to the private sector also grew by 9.3 percent during the same period, reaching 25.5 billion rials.
An analysis of the credit distribution by sector revealed that non-financial companies held a 45.9 percent share between January and June, followed closely by the individual sector at 44.5 percent. The financial sector represented 5.9 percent of the credit distribution, while other industries accounted for 3.7 percent.
Despite the challenges in the oil-related sector, Oman’s banking industry demonstrated positive growth trends, providing a glimmer of hope for economic stability and recovery in the coming quarters.
