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Oman’s GDP to rebound to 2.7 percent in 2024 driven by non-hydrocarbon sector

Economic growth expected to slow down to 1.3 percent this year
Oman’s GDP to rebound to 2.7 percent in 2024 driven by non-hydrocarbon sector
Oman

Oman’s gross domestic product (GDP) is expected to rebound next year to 2.7 percent, according to the International Monetary Fund (IMF). The IMF has attributed the fluctuations in Oman’s economy to oil production cuts by OPEC+ and moderate growth in the non-hydrocarbon sector.

In a statement released following a staff team visit to Oman earlier this month, the IMF noted that these fluctuations were caused by a combination of factors, including a recovery in the construction industry that remains subdued, a slowdown in global economic activity, and tighter financial conditions.

Read more: Oman: Shaping up to be Middle East’s largest producer of green hydrogen

According to projections, the non-hydrocarbon sector in Oman is expected to experience growth of 2 percent in 2023 and 2.5 percent in 2024, up from 1.2 percent in 2022. In addition, headline inflation declined from 2.8 percent in 2022 (year-over-year) to 1.1 percent in April 2023 (year-over-year). The decrease was attributed to lower food inflation and a stronger US dollar.

The near-to medium-term outlook for Oman’s economy is positive and the risks to the outlook are balanced.

The fund said Oman’s economic growth is expected to slow down to 1.3 percent this year, compared to 4.3 percent in 2022.

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