Page 4 - Policy Economic Report - September 2024

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Executive Summary

According to Organization for Economic Cooperation and Development (OECD) latest Economic Outlook
published in September 2024, the global economy remained resilient in the first half of 2024, with output
growing at an estimated annualized rate of 3.2%.

The global growth is expected to stabilize over the projection period at 3.2% in both 2024 and 2025,
broadly in line with the average pace observed through the first half of this year.

Annual GDP growth in the United States is projected to slow but supported by monetary policy easing,
with growth projected to be 2.6% in 2024 and 1.6% in 2025. Euro area GDP growth is projected to be 0.7%
in 2024 and 1.3% in 2025, with activity supported by a recovery in real incomes and an improvement in
credit availability. Growth in China is expected to ease to 4.9% in 2024 and 4.5% in 2025, with additional
policy stimulus offset by subdued consumer demand.

The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI)
released Quarterly Estimates of Gross Domestic Product (GDP) for the April-June Quarter (Q1) of the
Financial Year (FY) 2024-25.

The key highlights of the estimates are as below: -

• Real GDP has been estimated to grow by 6.7% in Q1 of FY 2024-25 over the growth rate of 8.2%
in Q1 of FY 2023-24.

• Nominal GDP has witnessed a growth rate of 9.7% in Q1 of FY 2024-25 as compared to the growth
rate of 8.5% in Q1 of FY 2023-24.

• Real Gross Value Added (GVA) has grown by 6.8% in Q1 of FY 2024-25 over the growth rate of
8.3% in Q1 of the previous financial year. This GVA growth in the Q1 of FY 2024-25 has been driven
by significant growth in the Secondary Sector (8.4%), comprising of Construction (10.5%),
Electricity, Gas, Water Supply & Other Utility Services (10.4%) and Manufacturing (7.0%) sectors.

• Growth rate in Nominal GVA for Q1 of FY 2024-25 have been estimated at 9.8% over 8.2% growth
rate in Q1 of FY 2023-24.

• Private Final Consumption Expenditure (PFCE) and Gross Fixed Capital Formation (GFCF), at
Constant Prices, have witnessed growth rates of 7.4% and 7.5% respectively in Q1 of FY 2024-25.

• Net Taxes, at Current Prices, has observed the growth rate of 8.0 % in Q1 of FY 2024-25 resulting
in 0.1%-point gap between the growth rates of GVA and GDP.

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