Oman’s Economic Outlook: Fitch Ratings Affirms ‘BB+’ Rating
Fitch Ratings has recently affirmed Oman’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘BB+’ with a stable outlook. The ratings are supported by a higher GDP per capita, recent budget reforms, and a decreasing government debt-to-GDP ratio.
Despite challenges like high dependence on oil revenue and a net external debtor position, Fitch projects continued budget surpluses for Oman in the coming years. The agency expects Oman’s budget surplus to narrow in 2024 and 2025 due to changing oil prices and OPEC+ production quotas, with a focus on improving non-oil fiscal balance.
Additionally, Oman’s debt-to-GDP ratio is expected to decrease significantly by the end of 2025 as the country pre-pays external debt and manages its debt profile effectively. Fitch forecasts a modest overall GDP growth for Oman in 2024, driven by non-oil sectors like tourism and foreign investment.
Overall, Oman’s economic outlook remains positive, with efforts to enhance non-oil revenue streams, control debt, and stimulate growth in non-oil sectors contributing to the country’s economic stability and resilience.
