Oman’s Economy Grows with Low Inflation and Structural Reforms, IMF Report

The International Monetary Fund (IMF) has highlighted Oman’s steady economic growth, supported by low inflation, ongoing reforms, and an improved fiscal position.

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Key Highlights from the Report:

1️⃣ Economic Growth:

• Growth reached 1.2% in 2023 and accelerated to 1.9% in the first half of 2024.

2️⃣ Inflation:

• Inflation decreased from 0.9% in 2023 to 0.6% in 2024 (January to September).

3️⃣ Non-Hydrocarbon Sector Performance:

• A robust growth of 3.8% in the first half of 2024, driven by construction, manufacturing, and services.

4️⃣ Fiscal Surplus:

• Oman maintains strong fiscal and current account surpluses.

5️⃣ Public Debt:

• Significant reduction in public debt, with Oman’s credit rating upgraded to investment grade.

6️⃣ Progress on Reforms:

• Successful implementation of a new social protection law.
• Ongoing labor market reforms and support for SMEs.
• Expansion of renewable energy and the green hydrogen economy.

7️⃣ Banking Sector Strength:

• Profitability has returned to pre-pandemic levels.
• Strong capital and liquidity buffers with excellent asset quality.

Conclusion:
The IMF report underscores Oman’s dedication to economic sustainability and diversification, positioning it as a regional model for smart economic transformation.