Oman’s GDP growth rate to slip this year on OPEC+ cuts

Oman’s GDP growth rate to slip this year on OPEC+ cuts

Oman is forecast to see real GDP growth 1.7% this year, down from 4.3% in 2022, according to Emirates NBD. The Dubai-based lender said in a note on Thursday that while this is a downgrade from their earlier forecast of 2.8% growth it is in line with the voluntary oil production curbs being implemented as part of the OPEC+ grouping. On the other hand, the outlook for the non-oil sector remains positive, buoyed by government infrastructure spending, a surge in tourist arrivals, and falling inflation, which the bank forecast will average 1.0% this year, from 2.8% in 2022. Oman's strong growth in 2022 was driven by the hydrocarbon sector which expanded 10.2%. The non-oil sector was the laggard in 2022 as it grew 1.6%: standout sectors were restaurants & hotels which recorded growth of 17.3%, while manufacturing expanded 28.9%, with manufacturing of chemical and petroleum products growing at a far slower rate. For this year the lender says the dynamics of growth in Oman will be reversed due to the voluntary cut of 40,000 barrels per day (b/d) that the country began in May and intends to continue through to the end of 2024 as things stand. Crude oil production