In the first quarter (Q1) of 2023, the Sultanate’s gross domestic product (GDP) at constant prices recorded a year-on-year increase of 0.8 per cent, according to a Department of Economic Planning and Statistics (JPES) report.
The year-on-year increase was attributed to an increase in the non-oil and gas sector by 6.2 per cent. Meanwhile, the oil and gas sector fell by five per cent.
The increase in the sector was driven by the rise in subsectors such as air transport by 285.1 per cent, followed by finance (71.7) and other transport services (33.1).
The increase in the finance subsector was in line with an increase in the income of banking activities. Meanwhile, the increase in the air transport and the other transport services was driven by an increase in passenger air arrivals and departures, corresponding to the full lifting of travel measures.
The manufacture of petroleum and chemical products subsector under non-oil and gas sector experienced a decline due a decrease in the production of petrochemicals as a result of maintenance activities.
However, the production of new chemical products, particularly urea fertiliser, recorded a significant increase of 198.5 per cent.
The decline in the oil and gas sector was due to a decrease in the crude oil, natural gas and liquefied natural gas (LNG) production following the impact of the COVID-19 pandemic which caused delays in exploration, development, production, and rejuvenation work.
GDP by economic activity was mainly contributed by the industry sector, about 59.9 per cent, followed by the services (38.9) and the agriculture, forestry and fishery (1.2) sectors.
The Sultanate’s GDP at current prices in Q1 2023 was valued at BND4.9 billion compared to BND5.1 billion in Q1 2022.
The oil and gas sector, comprising oil and gas mining and LNG manufacturing, accounted for 49.2 per cent of the total gross value added (GVA).
Meanwhile, the non-oil and gas sector, including downstream activities such as the manufacture of petroleum and chemical products, contributed 50.8 per cent of GDP.
By expenditure approach, the increase in GDP growth was mainly due to a 24.2-per-cent increase in the household final consumption expenditure.
However, the increase was moderated by a decrease in gross capital formation by 5.7 per cent, government final consumption expenditure (5.1) and exports of goods and services (4.1), mainly the export of mineral fuels.
The full report for the first quarter of 2023 is available from JPES’ website.
