RIYADH: Oman’s gross domestic product registered a 9.5 percent decline in the second quarter of 2023 compared to the same period last year, primarily attributed to a drop in oil-related activities.
The GDP at current prices fell to 10.08 billion Omani rials ($26.3 billion) in the second quarter from the 11.14 billion rials recorded during the same period last year, according to the National Center for Statistics and Information.
Citing data from the NCSI, the Oman News Agency reported that the decline was primarily due to a 18.3 percent decrease in the value of oil-related activities during the second quarter. This drop went from 4.46 billion rials in the year-ago period to 3.64 billion rials.
A more detailed breakdown revealed that the value of crude oil activities slumped by 19.5 percent to 3.17 billion rials, and natural gas activities descended by 9.2 percent to 475.6 million rials.
In the non-oil sector, revenue in the second quarter slipped by 3.6 percent. It fell from 7.12 million rials in the corresponding period last year to 6.86 million rials.
Furthermore, earnings from industrial activities decreased, totaling 1.63 million rials in the second quarter, compared to 2.22 billion rials between April and June of 2022.
During the second quarter, agricultural, forestry, and fishing activities contributed 206 million rials to the GDP, while services accounted for 5.02 billion rials.
Additionally, the GDP at current prices for the first half of 2023 experienced a 2.4 percent decline, reaching 20.39 billion rials compared to the same period last year.
Credit and deposits rise 8.7%
Oman’s banking sector witnessed an 8.7 percent growth 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 this credit distribution by sector revealed that non-financial companies held a 45.9 percent share between January and June, followed by the individual sector at 44.5 percent. The financial sector accounted for 5.9 percent, while other industries represented 3.7 percent.