Oman Economic Forecast

Oman Economic Outlook

February 6, 2018

In 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 Growth

Growth 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

20122013201420152016
Population (million)3.33.63.73.84.0
GDP per capita (USD)23,27121,93521,77318,16116,731
GDP (USD bn)76.678.880.969.766.2
Economic Growth (GDP, annual variation in %)7.14.42.55.7-  
Consumption (annual variation in %)14.42.57.42.0-  
Investment (annual variation in %)26.26.10.82.5-  
Industrial Production (annual variation in %)4.93.1-0.14.9-  
Unemployment Rate7.47.37.217.317.5
Fiscal Balance (% of GDP)-0.30.8-3.4-18.7-26.2
Public Debt (% of GDP)4.64.94.99.2-  
Inflation Rate (CPI, annual variation in %)3.01.31.00.11.1
Policy Interest Rate (%)1.001.001.001.001.19
Exchange Rate (vs USD)0.390.390.390.390.39
Current Account (% of GDP)10.26.65.2-15.5-  
Current Account Balance (USD bn)7.85.24.2-10.8-  
Trade Balance (USD billion)26.524.425.69.1-  
Exports (USD billion)52.156.453.535.6-  
Imports (USD billion)25.632.027.926.5-  
Exports (annual variation in %)10.78.2-5.1-33.4-  
Imports (annual variation in %)19.225.0-13.0-4.7-  
International Reserves (USD)14.315.916.317.520.2

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Oman Facts

ValueChangeDate
Exchange Rate0.390.06 %Feb 19
Stock Market0.10.0 %Feb 19

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