Oman’s financial fundamentals well-poised to support growth

Oman’s financial fundamentals well-poised to support growth

Muscat: Oman’s financial fundamentals remain well-poised to support the economy and the risks to financial stability have declined, according to a new report published by the Central Bank of Oman (CBO).

“Oman has witnessed a series of favourable developments, which has culminated in positive rating actions by all major credit rating agencies during the first half of 2023,” the CBO’s Financial Stability Report (FSR) 2023 published recently said.

“These developments include notable improvements in fiscal performance, external account, real and nominal output, and debt sustainability,” the report further added.

On the global front, price stability has been in the limelight for some time now, prompting central banks to implement successive interest rate hikes. The ensuing tighter financial conditions may have a bearing on the pace of global economic recovery.

“In Oman, however, the inflation remained benign because of the prudent fiscal measure taken by the government, which complemented the monetary stance of the CBO,” the FSR report said.

Being an open economy, Oman is susceptible to external developments the report pointed out. “However, the Omani financial sector, characterised by its conservative nature, primarily concentrates on catering to the financing requirements of the domestic economy. Consequently, it has remained unaffected by the recent banking turmoil,” the