The national economy has achieved positive results up to the end of the third quarter of 2017. The indicators released by the Centre show an increase in the total value added of oil and non-oil activities and the growth of gross domestic product (GDP). This is reflected in the public finances of the country, which saw a rise in total revenues and government spending.
The NCSI's report 'Analysis of the economic situation in the Sultanate in the third quarter 2017' said the GDP at current prices by the end of the third quarter of 2017 had gone up by 10.1% to reach to RO 20.3 billion compared to RO 18.5 billion for the corresponding period last year.
The value addition of petroleum activities increased by 23.9% to RO 6.3 billion compared with RO 5 billion during the same period last year. The significant increase in the value added of crude oil contributed 27.8% to the increase in the value added of oil activities reaching 5.3 billion, compared to RO 4.1 billion during the same period last year.
Non-oil activities increased by 4.9% compared to the previous year and reached to RO 14.7 billion. The added value of services activities increased by 5.7%, industrial activities by 2.8% and agriculture and fish by 5.4%. In the country's general financial indicators, the state budget deficit fell by 32.2% to reach to RO 3 billion by the end of the third quarter of 2017, compared to RO 4.4 billion during the same period last year. Total revenues increased by 20% to reach to RO 6 billion from RO 5 billion during the same period last year. Total public expenditure increased by 4% to reach to RO 8.4 billion, with a 5.2% rise in current expenditures. Public spending increased by 71.7% of total public expenditure. Total interest on loans increased by 286.3% to reach to RO 197.8 million compared with RO 51.2 million during the same period in the previous year, while the increase in volume of expenses was 7.2% against the decrease in the value of contributions and support by 23.1%.
Oil revenues by the end of the third quarter of 2017 went up by 27.3% and non-oil revenues increased by 3.2%, while the total income proceeds of companies was RO 332.1 million, down by 6.6% compared to the same period last year. In the foreign trade indicators, the trade balance of the Sultanate increased by 48.6% to RO 1.4 billion compared to RO 944.3 million in the third quarter of 2016. The surplus in the trade balance at the end of the third quarter of 2017 was due to the increase in the value of commodity exports to RO 7.7 billion from RO 6.6 billion during the same period last year. The value of oil exports was 58.6% of the total value of exports. Total crude oil exports increased by 21.2% to reach to RO 4.3 billion while natural gas exports increased by 63.3%.
The total value of non-oil exports was worth RO 2.4 billion, an increase of 31.4% compared to the third quarter of 2016. Exports of the most developed mineral products by the end of the third quarter of 2017 were 51.5% higher than the same period of the previous year, followed by chemical products, which increased by 41.9%.
As far as commodity imports are concerned, machineries, electrical equipments and parts were 21.1% of the total value of imports, while ration of imports of the transport equipment was highest by the end of the third quarter of 2017 at 75.7%, followed by imports of natural pearls or cultured gems by 46.3% of the total quantity of commodity imports to the Sultanate by the end of the third quarter of 2017. These imports were made through customs ports. The United Arab Emirates was on top of the list of importers. It imported 22.1% of the total non-oil exports from the Sultanate of Oman. The Sultanate imports about 42.4% of all commodity items from the UAE.
The Sultanate's total commodity imports from the United States by the end of the third quarter of 2017 increased by 140.2% compared to the same period last year. In terms of cash position indicators, total domestic liquidity increased by 3.7% to reach to RO 16.1 billion at the end of the third quarter of 2017 compared to RO 15.5 billion during the same period last year. Money supply went down by 2.3% to RO 5 billion from RO 5.2 billion of the third quarter of 2016.
Private sector deposits went up by 5.6% to reach to RO 13.8 billion compared to RO 13.1 billion during the same period in 2016. The total loans and finance granted by commercial banks and Islamic windows increased by 5.7% to reach to RO 23.1 billion and the average interest rate on total loans was 5% compared to RO 21.8 billion by the end of the third quarter of 2016 with an average interest rate of 4.8%.
The total value of foreign assets at the Central Bank of Oman dropped by 13.2% to RO 6.6 billion by the end of the third quarter of 2017 compared with RO 7.6 billion during the same period previous year. The purchasing power of Omani Riyal decreased by 1.1%. The real exchange rate by the end of the third quarter of 2017 was 101.1 points compared with 102.2 points during the same period in the previous year.
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