Oman’s debt burden to decline below 38% of GDP by year-end: Moody’s

Oman’s debt burden to decline below 38% of GDP by year-end: Moody’s

Muscat – Supported by favourable oil prices and the government’s restrained spending, Oman’s debt metrics have shown further improvement this year, according to Moody’s Investor Service. Moody’s estimates Oman’s fiscal balance to maintain a robust surplus of around 3.5% of GDP in 2023, following a surplus of 7.5% in 2022, the highest in a decade, […]Muscat – Supported by favourable oil prices and the government’s restrained spending, Oman’s debt metrics have shown further improvement this year, according to Moody’s Investor Service.

Moody’s estimates Oman’s fiscal balance to maintain a robust surplus of around 3.5% of GDP in 2023, following a surplus of 7.5% in 2022, the highest in a decade, and a deficit of 3.1% in 2021.

‘Oman’s fiscal and external sector metrics continued to benefit from supportive oil prices during 2023. While most of the fiscal improvement during 2022-23 was a result of higher hydrocarbon revenue, the government’s spending restraint and the value-added tax introduced in April 2021 contributed to maximising the fiscal windfall,’ Moody’s said in its rating action statement on Friday.

The rating agency pointed out that the increase in Oman’s non-interest expenditure, excluding spending related to oil and gas production during 2022-2023, was broadly offset by the increase in