RO 7.37 billion GDP

MUSCAT — Despite adverse global developments, Omani economy continued to sustain the momentum in growth, registering a rise in gross domestic product (GDP) at current prices by 18.9 per cent to stand at RO 7,371 million during the first quarter of 2012, compared to RO 6,198 million during the same period last year. While nominal GDP emanating from the petroleum sector posted a growth of 25.7 per cent, non-petroleum sector rose by 12.4 per cent during the first quarter.

The average rate of inflation stood lower at 3.1 per cent during the first half of this year compared to 4 per cent last year. The overall fiscal balance, as well as the country’s external current account continued to improve significantly mainly due to high crude oil prices prevailing in the international market. Consistent with sustained recovery of the Omani economy, the monetary and banking indicators continued to strengthen.

Total assets of commercial banks increased noticeably by 20 per cent to RO 19,884.6 million in July this year compared to RO 16,573.8 million in July, 2011. Cash on hand and deposits of commercial banks with the CBO stood higher at RO 1,510.8 million at the end of July compared to RO 1,121.4 million in July, 2011. Total credit expanded by 19.3 per cent to RO 13,806.3 million at the end of July 2012 from RO 11,576.0 million last year.

While credit to government declined by 22.4 per cent at the end of July, credit to public enterprises and private sector improved remarkably by 22.3 per cent and 19.3 per cent, respectively. Commercial banks’ overall investments in securities increased by 22.4 per cent to RO 1,873.4 million in July from RO 1,530.6 million last year. Of the total outstanding investments, commercial banks’ investments in CBO CDs decreased by 21.4 per cent to RO 680.5 million in July from RO 866 million last year.

Investments in government development bonds (GDBs) increased by 63.6 per cent to RO 466.7 million in July compared to its level last year. Commercial banks’ investments in foreign securities increased to RO 550.5 million in July from RO 233.8 million last year. On the liabilities side of the balance sheet, total deposits (rials plus foreign currency deposits) of commercial banks increased by 19.6 per cent to RO 13,469.1 million in July from RO 11,259.6 million in July, 2011.
Government deposits with commercial banks increased by 25.6 per cent to RO 3,637.2 million, while deposits of public enterprises increased by 24.9 per cent to RO 1,025.7 million during the same period. Private sector deposits with the commercial banks increased by 15.8 per cent to RO 8,597.1 million in July 2012 from RO 7,424.9 million last year. The provisional figure on net profits of commercial banks stood higher at RO 178.2 million at the end of July compared to RO 143.4 million at the end of July, 2011. — ONA