Sultanate’s budget deficit dips by 42.3 per cent

MUSCAT: The Sultanate’s gross domestic product (GDP) at current prices recorded a growth of 15.1 per cent, while the value added by non-oil activities increased by 5.1 per cent and those of oil by 37.1 per cent, according to data released by the National Centre for Statistics and Information (NCSI). The quarterly analysis of the economic situation of the Sultanate revealed that the GDP at current prices increased from RO 12.8 billion at the end of the second quarter of 2017 to RO 14.7 billion at the end of the second quarter of 2018. This is attributed to the increase in oil prices from $51.8 per barrel in the second quarter of 2017 to about $63.9 per barrel in the second quarter of 2018. The value added by oil activities stood at RO 5.4 billion at the end of second quarter of 2018, compared to RO 4 billion during the same period in 2017. Similarly, the value added by natural gas increased by 97.9 per cent to reach RO 1.3 billion at the end of second quarter of 2018, compared to RO 0.6 billion at the end of the second quarter of 2017. The value added by non-oil activities reached RO 9.8 billion at the end of the second quarter of 2018. The value added by industrial activities increased by 5.7 per cent, while the value added of service activities increased by 4.9 per cent, and agriculture and fisheries by 2.8 per cent compared to the end of second quarter of 2017. Regarding the general budget of the country, the value of the deficit in the general budget by the end of the second quarter of 2018 dipped by about 42.3 per cent to record RO 1.4 billion, compared to about RO 2.4 billion by the end of the second quarter of 2017. Total revenues increased by 23.5 per cent to reach RO 4.9 billion, compared to RO 4 billion at the end of the second quarter of 2017. Total public expenditure went up by 5.7 per cent to reach RO 6 billion. In the foreign trade indicators, the report indicates that the trade balance at the end of the second quarter of 2018 increased by RO 1.2 billion to reach RO 2.7 billion. The surplus in trade balance is attributed to the increase in commodity exports by 28.5 per cent to reach RO 7.7 billion. The value of commodity imports increased by 10.4 per cent to reach RO 5.1 billion at the end of the second quarter of 2018 compared to RO 4.6 billion at the end of the second quarter of 2017. In terms of cash position indicators, total domestic liquidity (M2) increased by 3 per cent to reach RO 16.6 billion at the end of the second quarter of 2018 compared to RO 16.1 billion at the end of the second quarter of 2017. The money supply (M1) declined by 3.1 per cent to reach RO 5.3 billion compared to RO 5.4 billion at the end of the second quarter of 2017. Total private sector deposits increased by 4.7 per cent at the end of the second quarter of 2018 to reach RO 14.2 billion compared to RO 13.6 billion at the end of the second quarter of 2017. The total value of loans and finance provided through commercial banks and Islamic windows increased by 6.1 per cent at the end of the second quarter of 2018 to reach RO 24.3 billion compared to RO 22.9 billion at the end of the second quarter of 2017. The total value of personal loans also increased by 2.9 per cent to reach RO 8.3 billion, while the average interest rate on total loans increased by 5.2 per cent compared to 4.9 per cent at the end of the second quarter of 2017. — ONA