Surge in oil prices and accelerated reforms under Oman Vision 2040 are benefitting the economy
By Staff Reporter
Oman’s economy is expected to gain momentum, but the sultanate faces potential risks from regional geopolitical tensions, a sudden global economic downturn, and sustained high global interest rates, the International Monetary Fund( IMF) has said.
Surge in oil prices, driven by supply and demand imbalances, and accelerated reforms under Oman Vision 2040, are expected to boost the economy, a Washington-based fund said last month, at the end of an official staff mission to the country.
The Gulf nation’s real gross domestic product, which grew 1.3 per cent last year, is expected to moderate at 0.9 per cent this year, on the back of extended oil production cuts to the first half of this year, before accelerating to 4.1 per cent in 2025, said Cesar Serra, who led the IMF staff visit to Oman.
“The near- to medium-term outlook is favorable and risks to the outlook are broadly balanced.”
The IMF team visited Muscat from April 30 to May 8 to discuss economic and financial developments, the outlook, and the country’s policy priorities.
Oman’s non-hydrocarbon growth is projected to increase to 2.6 per cent in 2024 and 3.2 per cent in 2025, from 2.1 per cent last year, on continued reforms and investment projects.
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