Business & Finance Club - Muscat : Oman's economy grew 30.4 percent year-on-year in nominal terms in the first quarter, buoyed by higher oil prices and crude output, preliminary data showed.   

The country's nominal gross domestic product jumped to 5.3 billion rials ($13.7 billion) from 4.0 billion a year ago, data from the economy ministry showed.

The sultanate's GDP fell by 19.8 percent at current prices in January-March 2009 as oil prices dropped following the global economic downturn. It rose 6.1 percent quarter-on-quarter in January-March 2010.

The ministry did not release GDP data in real terms.

"We expect to see real overall GDP increase by 4.5 percent (in 2010) with both oil and non-oil sector seeing growth," said Monica Malik, chief economist at EFG Hermes in Dubai.

"Oman is continuing to see a rise in oil production, unlike many of the other GCC (Gulf Cooperation Council) countries which are seeing flat production levels," she said.   

Oil and gas activities accounted for 48 percent of the non-Opec member's economy in the first quarter, up from 35 percent in the same period of 2009.

Prices for Oman's crude jumped by 71 percent on average in the first quarter from a year ago. Inflation in Oman decelerated to 2.7 percent on an annual basis in June, data showed on Saturday.

The government expects the sultanate's hydrocarbon-based economy to power ahead at a 6 percent clip this year, helped by higher oil prices and a rise in fiscal spending.

Analysts polled by Reuters expected Oman's economy to expand by 4.0 percent in real terms this year, following a 3.7 percent rise in 2009.