Oman Business: Oman set for fiscal surplus, 4.3% growth: IMF – Gulf Digital News

Oman Business: Oman set for fiscal surplus, 4.3% growth: IMF – Gulf Digital News

High oil prices, continued fiscal consolidation and determined implementation of structural reforms in Oman are expected to generate fiscal surpluses and higher growth, an International Monetary Fund (IMF) mission report said.

The IMF mission, led by Daniel Kanda, conducted discussions in Muscat for the 2022 Article IV Consultation for Oman from September 20 to October 4. At the conclusion of the mission, Kanda issued a statement that said Oman’s economic recovery is gaining traction.

"Strong vaccination efforts have allowed for the relaxation of all social distancing restrictions. Overall GDP growth rebounded from -3.2 percent in 2020 to 3 percent in 2021, and is projected at 4.3 percent in 2022, supported by increased hydrocarbon production and continued recovery of non-hydrocarbon economic activity," the statement said.

CPI inflation has been contained thus far, partly reflecting administered prices and caps on selected fuel prices. Rebounding economic activity and elevated global inflationary pressures are expected to push up average inflation to 3 percent in 2022 given the relatively high dependence on imports and large weight of tradable items in the CPI basket. Direct spillovers on the Omani economy from the war in Ukraine have been limited, it said.

High oil prices and fiscal consolidation under the authorities’ Medium-Term