Oman’s GDP projected to grow at 2.5% this year

Oman’s GDP projected to grow at 2.5% this year

Muscat: Oman's economy is expected to expand moderately in 2023. Oman's economy entered this year on a positive note, expanding 4. 7 per cent y/y in Q1, outpacing the average growth rate last year and driven by non-oil output, which expanded 4. 6 per cent. While the energy sector slowed to 3. 5 per cent, with oil output growing by just 2. 8 per cent, fishing, building, and construction sectors have rebounded following double-digit contractions last year. Services have also climbed by 4. 5 per cent, supported by retail, transport, and real estate activity. Aligned with the Opec+ agreement, Oman is expected to reduce oil output to 1. 042mn b/d this year, down 2. 1 per cent from last year, with further adjustments anticipated in the coming year. Meanwhile, gas production increased by 3. 4 per cent in 2022 and will continue to inch up as more projects come online, shifting the composition of energy trade further in favour of gas. Despite hotel occupancy rates hovering slightly below 2019 levels, tourism is expected to be among the key sectors boosting the Sultanate's non-oil economic recovery, with indicators such as visitor numbers showing promising signs of improvement. Oman is also capitalising