Oman’s fiscal deficit to turn surplus next year

Oman’s fiscal deficit to turn surplus next year

Muscat: Oman's fiscal deficit is expected to turn positive in 2022, on the back of prudent policies initiated by the government. In 2020, according to a report by the International Monetary Fund (IMF), the country's fiscal deficit had widened to 19. 3 per cent of the gross domestic product (GDP), partly reflecting non-policy factors, notably the contraction in nominal GDP. The fiscal deficit is expected to drop to -2. 4 per cent in 2021, and then enter a surplus next year, added the IMF. The report went on to say that as the government continues to push ahead with diversification and Omanisation efforts, non-hydrocarbon exports are projected to improve. The current account balance is projected to remain in the negative territory over the medium term given the domestic production has a large import content. The report further said that the economy is set to recover this year, with non-hydrocarbon gross domestic product (GDP) growth of 1. 5 per cent as vaccine rollout in the country gradually restores domestic activity along with the recovery of external demand. In a statement, Mahmoud Mohieldin, the IMF's executive director for Oman, Ali Al Hosany, the alternate executive director, and Fouad Al Kohlany, advisor to