MUSCAT, OMAN – Oman’s economic growth is expected to rebound to 2.7 percent in 2024 but will slip in 2023 to 1.3 percent, the International Monetary Fund (IMF) said on Monday.
The projections reflect the oil production cuts by OPEC+, moderate growth in the non-hydrocarbon sector and a slowdown in global economic activity.
Oman’s real GDP rose by 4.3 percent in 2022, basically on an expansion of the hydrocarbon sector.
Non-hydrocarbon growth is projected to rise to 2 percent in 2023 and 2.5 percent in 2024.
Headline inflation fell to 1.1 percent by April 2023, reflecting lower food inflation and a stronger US dollar, the IMF said.
The banking sector remains sound as profitability has recovered . Asset quality remains strong while credit to the private sector continues to expand.
A sharp decline in oil price due to a severe global economic slowdown, lower demand for hydrocarbons due to global energy transition and pressures to spend the oil windfall represent key risks to the outlook, the report added.