RIYADH: Oman’s cautious fiscal policies, strong oil prices, and increase in nonhydrocarbon exports helped the country post a 6.2 percent budget surplus and a 2.4 percent current account gain in 2024. The International Monetary Fund ascribed these numbers to efficient economic management in its 2024 Article IV consultation. The nonhydrocarbon primary deficit as a percentage of nonhydrocarbon gross domestic product was constant despite increased social spending under a new protection statute, underscoring the government’s dedication to fiscal restraint.
Oman’s economic fundamentals continued to improve as the government debt as a percentage of GDP decreased further, reaching 35% in 2024. According to an IMF analysis published in December, the Gulf Cooperation Council’s economy have effectively withstand recent shocks thanks to robust nonhydrocarbon growth and continuous reforms. These findings are consistent with the region’s overall resilience.
According to the financial agency’s most recent review, Oman’s sovereign credit rating was recently raised to investment grade, demonstrating that its economic stability has gained recognition on a global scale. The banking industry is also still healthy, with high asset quality, sufficient capital and liquidity buffers, and profitability that has returned to pre-pandemic levels.
The IMF said that Oman’s economy increased by 1.2 percent in 2023 and accelerated to 1.9 percent year-over-year in the first half of 2024, despite the fact that OPEC+ oil output curbs restrained overall economic development.
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