Oman’s GDP growth projected to grow at 4.3% in 2022: IMF

Oman’s GDP growth projected to grow at 4.3% in 2022: IMF

Muscat: Oman's gross domestic product (GDP) growth is projected to grow at 4.3 per cent in 2022 supported by increased hydrocarbon production and continued recovery of non-hydrocarbon economic activity.

“The country's overall GDP growth rebounded from -3.2 per cent in 2020 to 3.0 per cent in 2021 and is projected at 4.3 per cent in 2022,” the statement from the IMF said on Wednesday.

Strong vaccination efforts have allowed for the relaxation of all social distancing restrictions, and the economic recovery is gaining traction, according to the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Oman and considered and endorsed the staff appraisal without a meeting.

The report further said that high oil prices and fiscal consolidation under the authorities’ Medium-Term Fiscal Plan (MTFP) have improved fiscal and external balances considerably. The overall central government balance improved by 12.8 percentage points of GDP to a deficit of 3.2 per cent in 2021, largely due to higher hydrocarbon revenue, expenditure restraint, and the introduction of VAT.

Fiscal and external surpluses are expected in 2022 and over the medium term. Central government debt declined to 62.9 per cent of GDP in 2021 and it is expected to decline to about