Oman's nominal GDP grew 30% in 2022

Muscat: The Omani economy showed a growth of 30 percent in nominal terms during 2022 as against a growth of 16.2 percent in 2021, said the Central Bank of Oman (CBO) in its annual report.

The surge in 2022 was attributed to both hydrocarbon and nonhydrocarbon sectors which showed growth rates of 61.6 percent and 16.9 percent, respectively.

The growth in the hydrocarbon sector was mainly driven by the rise in oil price by 48.4 percent, whereas the increase in production of oil was relatively moderate at 9.6 percent during the year.

As a result of these developments, the share of the hydrocarbon sector in nominal gross domestic product (GDP) increased to 37.7 percent in 2022 from 30.3 percent in 2021. Within the hydrocarbon sector, the major increase in nominal output came from crude petroleum, while natural gas output increased at a relatively moderate pace compared to crude oil.

The hydrocarbon sector contributed 77.2 percent to government revenues in 2022 as compared with 73.6 percent in 2021.

The nominal growth in the non-hydrocarbon sector was primarily driven by manufacturing, transportation and storage, wholesale and retail trade, as well as accommodation and food service activities.

The hydrocarbon sector continued to play a pivotal role in the Omani economy owing to its contribution to government revenues and its linkages with the non-hydrocarbon sector.

Nominal output from the sector recorded a remarkable growth of 61.6 percent during 2022, mainly driven by the increase in crude oil prices, as compared with 33.1 percent growth in 2021.

Reflecting global economic recovery and geopolitical developments in the Russia-Ukraine region, the average oil price increased by 48.4 percent in 2022 to reach an average of USD 95.4 per barrel from USD 64.3 per barrel in 2021, while oil production increased by 9.6 percent.

As a result of the significant rise in oil prices and higher nominal output from petroleum activities, the share of the hydrocarbon sector in nominal GDP increased to 37.7 percent in 2022 from 30.3 percent in 2021.

Within the hydrocarbon sector, the nominal output of crude petroleum increased by 65.6 percent in 2022 as compared with a growth of 40.0 percent in the previous year. Gas production also saw a modest growth of 3.8 percent in 2022, though the nominal value from the sector increased by 38.4 percent.

On the other hand, the share of natural gas in nominal output from the total hydrocarbon sector declined to 12.8 percent in 2022 as compared with 15.0 percent in 2021. This decline could be attributed to the impact of price and output dynamics within the sector.

Nominal output from non-hydrocarbon industrial activities increased by 23.5 percent in 2022 as compared with 14.1 percent growth a year ago.

This growth was supported by a robust increase of 49.6 percent in the manufacturing sector and 19.6 growth in mining and quarrying.

The electricity and water supply also increased by 4.3 percent, while the construction sector showed a marginal increase of 0.2 percent compared with 3.0 percent growth in 2021.