Q3 growth reflects positively on state’s finances

MUSCAT: The Omani national economy did well during the third quarter (Q3) 2017. This is very clear from the indices released by the National Centre for Statistics and Information, which point out that the added value for the oil and non-oil activities and the GDP has been on the rise. This growth has reflected positively on the state’s public finance which witnessed an increase in gross revenues and public expenditure. At its ‘Analysis of the Economic Situation in the Sultanate Q3, 2017’, NCSI said that the Sultanate’s gross domestic product (GDP) at the end of the third quarter of 2017 increased by 10.1 per cent to RO 20.3 billion at current prices, compared to RO 18.5 billion during the same period last year. Oil activities rose by 23.9 per cent to touch RO 6.3 billion at the end of Q3, 2017, compared with RO 5 billion at the end of the third quarter of 2016. The remarkable increase in crude oil added value of about 27.8 per cent contributed to the rise in the added value for the oil activities which stood at about RO 5.3 billion at the end of Q3, 2017, compared to RO 4.1 billion during the same period 2016. The non-oil activities grew by 4.9 per cent to RO 14.7 billion as compared with the same period in 2016. The added value for the service activates increased by 5.7 per cent, industrial activities 2.8 per cent and agriculture and fisheries activities 5.4 per cent respectively. As for the state’s public finance, the state’s deficit declined at the end of Q3, 2017 by 32.2 per cent to about RO 3 billion, compared to RO 4.4 billion during the same period in 2016. The gross revenues increased by 20 per cent to hit RO 6 billion at the end of Q3, 2017 as compared to RO 5 billion at the end of Q3, 2016. The public expenditure upped by 4 per cent at the end of Q3, 2017 to RO 8.4 billion. The growth of the current expenditure by 5.2 per cent contributed to the growth of the gross expenditure, especially the current expenditure which constitutes 71.7 per cent of the gross public expenditure. The interests over loans grew by 286.3 per cent to RO 197.8 million at the end of Q3, 2017, compared to RO 51.2 million at the end of Q3, 2016. The investment expenditure also grew by 7.2 per cent. On the contrary, the contribution and subsidy decreased by 23.1 per cent. At the end of Q3, 2017, the oil revenues grew by 27.3 per cent compared to 3.2 per cent for the non-oil revenues. The total revenues from the corporate income tax stood at RO 332.1; a decline of 6.6 per cent compared to the same period in 2016. As for the foreign trade indices, the Sultanate’s trade balance grew by 48.6 per cent to RO 1.4 billion, compared to RO 944.3 million at Q3, 2016. The surplus is attributed to the growth of the commodities imports to RO 7.7 billion, compared to RO 6.6 billion in the corresponding period in 2016. The value of oil exports constituted 58.6 per cent of the total value of exports as the total crude oil exports grew by 21.2 per cent to RO 4.3 billion. The exports of LNG grew by 63.3 per cent. The value of non-oil exports stood at RO 2.4 billion at the end of Q3, 2017; a growth of 31.4 per cent compared to the same period in 2016. The exports of the mineral products have achieved the highest growth rate as of the end of Q3, 2017 (about 51.1 per cent) compared to the same period in 2016, followed by chemical industries products (41.9 per cent). As for the commodity imports, the machinery, electrical appliances and their parts constituted 21.1 per cent of the total value of the Sultanate’s imports. The transport equipment imports witnessed the highest growth rate in Q3, 2017 (a growth by 75.7 per cent), followed by natural or artificial pearls and precious stones (46.3 per cent). 70.5 per cent of the total commodity imports to the Sultanate by the end of Q3 2017 came through the marine ports customs. The UAE topped the list of importing and exporting countries with the Sultanate with 22.1 per cent of the total non-oil exports. 42.4 per cent of the Sultanate’s commodity imports were from the UAE. The Sultanate’s gross commodity imports from the USA as of the end of Q3, 2017 grew by 140.2 per cent compared to the same period in 2016. As for the monetary indices, the gross domestic liquidity as of the end of Q3, 2017 grew by 3.7 per cent to about RO 16.1 billion, compared to RO 15.5 billion during the same period in 2016. The money supply declined by 2.3 per cent to about RO 5 billion as of the end of Q3, 2017, compared to RO 5.2 billion as of the end of Q3, 2016. The private sector deposits grew by 5.6 per cent to about RO 13.8 billion, compared to RO 13.1 billion during the same period in 2016. The value of gross loans and finance provided by the commercial banks and Islamic windows grew by 5.7 per cent to about RO 23.1 billion. The average interest rate on the loans stood at 5 per cent as of the end of Q3, 2017, compared to 4.8 per cent as of the end of Q3, 2017 (RO 21.8 billion). The gross value of the foreign assets at the Central Bank of Oman as of the end of Q3, 2017 decreased by RO 7.6 billion during the same period of 2016. The purchasing power of the Omani Riyal decreased by 1.1 per cent as the real exchange rate recorded 101.1 points as of the end of Q3, 2017 compared to 102.2 points as of the end of Q3, 2016. — ONA