Oman's real GDP expands 2.5 percent to $24.52 billion in Q1 2025

Economy ME

15 hours ago

Oman's economy demonstrated a consistent growth of 2.5 percent in real GDP by the end of Q1 2025, reaching OMR9.43 billion ($24.52 billion) at market prices—an increase from OMR9.2 billion during the same timeframe in 2024, as reported by Oman's National Centre for Statistics and Information. This rise in GDP was primarily fueled by robust performance in non-oil sectors, which experienced a 4.4 percent increase in added value, climbing to OMR6.92 billion compared to OMR6.63 billion in Q1 2024.
In contrast, oil activities experienced a slight decline of 0.4 percent, contributing OMR2.92 billion in Q1 2025, down from OMR2.94 billion the previous year. Crude oil production decreased by 2.2 percent to OMR2.45 billion, while natural gas production emerged as a positive factor, soaring 9.5 percent to OMR475.3 million.
IMF hails Oman's economic policies
Oman recorded a budget surplus of 6.2 percent and a current account gain of 2.4 percent in 2024, driven by prudent fiscal policies, elevated oil prices, and growth in nonhydrocarbon exports.
In its 2024 Article IV consultation, the International Monetary Fund attributed these outcomes to effective economic management. Despite increased social spending under a new protection law, the nonhydrocarbon primary deficit as a share of nonhydrocarbon gross domestic product remained stable, underscoring the government's commitment to financial discipline.
Government debt as a percentage of GDP further declined, reaching 35 percent in 2024, reflecting ongoing improvements in Oman's economic fundamentals.
Read more: Oman government Treasury bills issuance reaches $101.4 million
Oman's average inflation rate
The Sultanate of Oman experienced an average inflation rate of 0.81 percent during the initial five months of 2025 compared to the same period last year, according to the Consumer Price Index data released by the Ministry of Economy.
The report highlighted a 1.3 percent rise in the general import price index and a 4.1 percent increase in the producer price index by the end of the first quarter of 2025 compared to the corresponding period in 2024. Geographical distribution revealed varied inflation rates across governorates, with South Al Batinah recording a slight decline of 0.04 percent, while A'Dakhiliyah saw the highest rate at 1.58 percent, followed closely by Musandam at 1.51 percent and South A'Sharqiyah at 1.24 percent. More moderate increases were observed in North A'Sharqiyah (0.21 percent) and North Al Batinah (0.42 percent), with other governorates remaining below one percent.
Dr. Salim Abdullah Al-Sheikh, official spokesperson for
the Ministry of Economy
, indicated that the moderation in consumer price inflation was influenced by falling prices in the food and non-alcoholic beverages category, along with stable costs for housing, water, electricity, gas, and fuel. These categories account for over half of the consumer price index weight in Oman.
To enhance food security, Oman has established over 80 markets, slaughterhouses, and kiosks since 2021 under its governorates development program, he elaborated.
Meanwhile, the FAO Food Price Index noted a year-on-year increase of 7.2 points (6.0 percent) in May 2025 compared to the same month last year. On a monthly basis, the index averaged 127.7 points in May 2025, reflecting a slight decline of 1.0 point (0.8 percent) from April 2025. This fluctuation was driven by rising prices in dairy and meat products, while cereals, sugar, and vegetable oils saw price reductions.