The data issued by the National Center for Statistics and Information showed that the Sultanate of Oman's economy contracted in the first quarter of this year with the decline in energy sector activity, which indicates great difficulties faced by the government in implementing reforms.
According to the Statistics Center, the economic growth shrank by about 2.5 percent during the period between January and March last year, compared to an annual rate.
The oil industry contributes about 44 percent of the GDP, while the Sultanate aims to reduce it to 22 percent by investing $106 billion over the next five years. The downturn in the Omani economy confirms that Muscat has entered into an economic crisis that may last after it bet on diversifying sources of income, which is moving very slowly, despite the fact that the non-oil sector grew by 5.7 percent in the first quarter of this year on an annual basis.
The GDP declined by 15.3% at the end of the fourth quarter of last year, compared to the same period in 2019. According to the results of the expanded economic survey and the application of the new methodology in calculating GDP, the preliminary results showed an increase in the value of the economy’s growth in general and a change in the percentages of contribution of economic activities to the composition of the gross domestic product.
Source (London-based Al-Arab Newspaper, Edited)
