Oman Economic Outlook
February 6, 2018In early January Oman completed a USD 6.5 billion bond sale to fund the spending hike announced in the 2018 budget. The move will cover virtually all borrowing needs for the year, with the difference likely to come from financial reserves. Investors’ appetite for Oman’s debt has been boosted by a sustained rise in oil prices in recent months, which should also improve the country’s fiscal position. However, the budget deficit remained elevated in January–November due to higher spending. Positively, the country recently reached a seven-year deal to export 1.1 million tons of LNG per year, which should boost the economy going forward. On 28 January, the government announced a six-month visa ban for expats working in several professions—such as engineering and technical professions—to favor local workers and reduce high youth unemployment.
Oman Economic GrowthGrowth is likely to accelerate this year as the Khazzan gas field ramps up production and higher oil prices support private-sector investment. Looking further ahead, reforms to foreign ownership and investment laws should support growth. However, significant fiscal and external imbalances will continue clouding the outlook. Analysts forecast growth of 2.9% for 2018, up 0.2 percentage points from last month’s forecast, and 2.6% for 2019.
Oman Economy Data
|GDP per capita (USD)||23,271||21,935||21,773||18,161||16,731|
|GDP (USD bn)||76.6||78.8||80.9||69.7||66.2|
|Economic Growth (GDP, annual variation in %)||7.1||4.4||2.5||5.7||-|
|Consumption (annual variation in %)||14.4||2.5||7.4||2.0||-|
|Investment (annual variation in %)||26.2||6.1||0.8||2.5||-|
|Industrial Production (annual variation in %)||4.9||3.1||-0.1||4.9||-|
|Fiscal Balance (% of GDP)||-0.3||0.8||-3.4||-18.7||-26.2|
|Public Debt (% of GDP)||4.6||4.9||4.9||9.2||-|
|Inflation Rate (CPI, annual variation in %)||3.0||1.3||1.0||0.1||1.1|
|Policy Interest Rate (%)||1.00||1.00||1.00||1.00||1.19|
|Exchange Rate (vs USD)||0.39||0.39||0.39||0.39||0.39|
|Current Account (% of GDP)||10.2||6.6||5.2||-15.5||-|
|Current Account Balance (USD bn)||7.8||5.2||4.2||-10.8||-|
|Trade Balance (USD billion)||26.5||24.4||25.6||9.1||-|
|Exports (USD billion)||52.1||56.4||53.5||35.6||-|
|Imports (USD billion)||25.6||32.0||27.9||26.5||-|
|Exports (annual variation in %)||10.7||8.2||-5.1||-33.4||-|
|Imports (annual variation in %)||19.2||25.0||-13.0||-4.7||-|
|International Reserves (USD)||14.3||15.9||16.3||17.5||20.2|
5 years of Oman economic forecasts for more than 30 economic indicators.
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|Exchange Rate||0.39||0.06 %||Feb 19|
|Stock Market||0.1||0.0 %||Feb 19|
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