Oman’s GDP growth likely to reach 4.5% in 2022, says World Bank

Oman’s GDP growth likely to reach 4.5% in 2022, says World Bank

Muscat: Oman’s economy is projected to continue its recovery and strengthen over the medium-term, driven by robust energy prices, expansion of oil and gas production, and wide-ranging structural reforms, according to the new World Bank Gulf Economic Update (GEU).

The report that was released on Monday said the GDP growth is forecast to reach 4.5% in 2022 before moderating to an average of 3.2% in 2023-24. The overall fiscal deficit is expected to turn into a surplus of nearly 6% of GDP in 2022—the first surplus in almost a decade—reducing gross financing needs.

The external balance is swinging back into surplus on the back of higher oil receipts and recovery in non-oil exports.

Commenting on the economies of the Gulf Cooperation Council (GCC), the report said that the GCC economies are projected to expand by 6.9% in 2022 before moderating to 3.7% and 2.4% in 2023 and 2024, according to the report. Easing of pandemic restrictions and positive developments in the hydrocarbon market drove strong recoveries in 2021 and 2022 across the GCC.

Strong economic recovery and supply chain bottlenecks raised inflation in the GCC to an average rate of 2.1% in 2021—up from 0.8% in 2020. Supported by higher hydrocarbon prices, the GCC