Oman GDP up 17.3% on higher crude prices

Muscat : Oman's third quarter gross domestic product (GDP) grew by 17.3 per cent in the third quarter of 2009 compared to the second quarter of 2009 according to a report by the Ministry of National Economy.

The growth is attributed to the growth in the added value for oil activities resulting from the record increase in oil production and improved oil prices in the third quarter of 2009.

The report, released by the Oman News Agency on Friday, pointed out the increase resulted in a great contribution by non-oil activities in the growth of the third quarter in 2009, 15.4 per cent of the growth amounting to 17.4 per cent compared with the previous quarter.

Significant

This was the first positive significant contribution to growth since the third quarter in 2008, compared to the drastic decline in the added value for the oil activities in the fourth quarter in 2008 and the first quarter in 2009. The current mode for the growth of oil activities led to high growth rates in GDP during the third quarter of 2009.

The report pointed out the non-oil activities contributed positively to the growth in the third quarter of 2009 compared to the previous quarter, about 1.9 point in the growth rate amounting to 17.4 per cent.

The other three quarters posted negative growth. The report says that the non-oil sectors grew by 2.9 per cent compared to the second quarter of 2009. In the third quarter of 2009, the performance of the non-oil sectors showed signs of recovery from the negative impacts of the global financial crisis.

While these sectors are below their normal performance levels, still most of the growth witnessed by the non-oil sectors came from services that include health and education followed by public administration and defence.

The report points out that the industrial activities recorded a slight negative contribution during the third quarter of 2009. It should be noted that it recorded a slight positive contribution to growth in the second quarter 2009, which seemed to be as a recovery from the major negative growth in the first quarter of 2009.

The report pointed out that there has been a continuous increase in oil production in the third quarter in 2009, 5.3 per cent compared to the previous quarter. This increase in production is considered the biggest in production leading the average annual production rates to the levels witnessed in the first quarter of 2003.

The rate of increase in oil production in the first ten months of 2009 amounted to 6.9 per cent, the highest compared to the same period in 2008.

The report pointed out the average price for Omani crude oil saw a remarkable increase compared to the previous quarter from $46.49 (Dh170.72) to $64.10.