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Oman’s Economic Growth Outlook
The International Monetary Fund (IMF) recently stated that Oman’s near- to medium-term growth outlook is promising, with balanced risks. The IMF staff team, led by Cesar Serra, visited Muscat to discuss economic developments and policy priorities, concluding that Oman’s economic activity is expanding and inflation remains low.
Despite OPEC+ oil production cuts, Oman’s real GDP grew by 1.3% in 2023, with growth expected to reach 0.9% in 2024 and accelerate to 4.1% in 2025. Non-hydrocarbon growth is projected to increase, supported by reforms and investment projects. The fiscal surplus is forecasted to continue, with debt as a share of GDP decreasing to 36.5% in 2023.
Oman’s banking sector remains strong, with comfortable levels of capital, liquidity, and profitability. The sector saw a positive net foreign asset position for the first time since 2014, indicating resilience and expansion in credit to the private sector.
Overall, Oman’s economic prospects are bright, with favorable oil prices and ongoing reforms contributing to a stable economic and financial landscape.