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Oman’s GDP Grows 13pc in 2008

MUSCAT — Oman’s Gross Domestic Product grew by 13 per cent at constant prices and 44 per cent at current prices in 2008, according to the latest Oman Economic Review published by the Ministry of National Economy.

The report said that the Omani economy was not seriously affected by the global financial crisis, pointing out that the growth of liquidity and credit rates remained highly positive. The local demand indicators, net imports and size of manpower in private sector did not provide any signs of recession, it added.

However, some indicators pointed out to a slight impact of the global financial crisis on the economy, the report said.Notably, the average oil price for Omani crude declined in February 2009 to $40.53 per barrel, a price not recorded since January 2005. The average price in the first three months of 2009 reached $45.25 per barrel, slightly higher than the estimated price in the state budget for 2009, which was $45 per barrel.

The value of oil and non oil exports in 2008 posted a higher level to achieve an unprecedented trade surplus of RO5.69 billion. The report said the global meltdown had some positive impacts on the sultanate’s economy with inflation declining from its peak in June 2008 of 13.7 per cent to 11.8 per cent in December and 9.8 per cent in January 2009.

GDP at current prices rose in 2008 to RO23,049 million compared to RO16,010 million in 2007, up 44 per cent. The contribution of the oil sector was 28.7 per cent and that of the non-oil sector 15.2 per cent.

The state budget achieved a surplus of RO1.58 billion, with revenues reaching RO.98 billion and expenditure of RO6.4 billion.

· ravindranath@khaleejtimes.com