Considered International Monetary Fund The Omani economy continues to recover, and it is likely to achieve They grew In 2024, after this year slows down due to oil production cuts, pointing out that reforms need to continue.
The Fund stated last month in its latest updates on the region that gross domestic product In the Gulf region, it is expected to slow to 1.5% in 2023 in light of the decline in oil gross domestic product due to the reduction in crude production and low prices, but overall growth is expected to reach 3.7% next year.
After a visit to Oman, the Fund expected that the Sultanate’s gross domestic product would record 1.3% this year, down from 4.3% in 2022. Last month, the Fund expected that Oman’s economy would recover and record 2.7% in 2024, supported by a rise in hydrocarbon production and strong growth in non-oil sectors.
The Fund said, in a statement, “But the future landscape is subject to great uncertainty, including the volatility of oil prices, the global economy, financial developments, and the possibility of an indirect extension of the war launched by Israel on the Gaza Strip.”
Oman is a relatively small producer of crude oil, more sensitive to oil price fluctuations than the rest of the Gulf countries, and the Sultanate relies mainly on hydrocarbon revenues despite all economies in the region investing in economic diversification plans.
Oman launched a medium-term financial program in 2020 to reduce public debt, diversify sources of revenue, and stimulate economic growth. The program, in addition to huge oil revenues last year, strengthened the Sultanate’s public finances.
“Maintaining the momentum of financial reforms remains key to consolidating financial sustainability and ensuring equity between generations,” the Fund said. Planned taxation and energy subsidy reform remain priorities.
Credit rating agencies raised the Sultanate of Oman’s rating earlier in 2023.
