MUSCAT: The Omani economy has witnessed tangible progress, as evidenced by the preliminary indicators of economic performance and the ongoing economic growth and expansion, said Dr Said al Saqri, Minister of Economy (MoE).
Addressing a press conference on the country’s post-pandemic economic recovery, he said: “The Omani economy witnessed a growth rate of 2.1% at constant prices, driven by a 1.4% growth in the oil sector and a 2.1% growth in non-oil activities. The Gross Domestic Product (GDP), at constant prices, showed positive growth rates of 3.0% and 4.3% in the years 2021 and 2022, respectively.”
“Additionally, there were positive developments in the performance of the trade balance and the financial sector. Public debt also decreased to around 37% of the GDP, leading to an improvement in credit ratings by various relevant institutions. These positive developments place important responsibilities on us as the Ministry of Economy. The first of which is to leverage such conditions to achieve economic sustainability and capitalize on the direct gains from them,” the Minister further stated.
According to the official, the positive state of the Omani economy could be attributed to three main elements: governance, policy clarity, and the presence of enduring accelerators, such as the Tenth Five-Year Plan programs and national initiatives that support the priorities of the vision.
“These factors have contributed to creating an environment conducive to achieving the targets set in the initial executive plans of the vision, bringing us closer to realizing our desired objectives,” Al Saqri noted.
Dr Nasser al Mawali, Under-Secretary of Economy, shared that the overall economic indicators for the national economy indicate an improvement in economic growth trends.
During his address, he explained that the GDP at constant prices grew by 2.1 per cent during the first half of 2023, amounting to RO 17 billion, compared to RO 16.7 billion in H1 of 2022.
Furthermore, he shared that the Ministry’s economic growth forecasts indicate a growth rate of 2.3 percent in 2023.
In addition to an anticipated inflation rate of 1 per cent in 2023, a lower figure in comparison to the International Monetary Fund (IMF) forecast of 1.9 per cent, he said.
However, actual data indicates that inflation rates in the national economy remain at safe, low levels, with the Consumer Price Index registering approximately 1.2% during the first eight months of this year, he noted.
Additionally, Al Mawali added that key initiatives have been taken to mitigate the effects on inflation including fuel price stabilization, expanding the list of VAT-exempted goods (513 items), the support of wheat purchases, assisting farmers, calculating imported inflation amongst many others.
According to Intisar al Wahaibi, Director-General of Development Planning, 78 per cent of the programmes envisioned in the Tenth Five-Year Development Plan (2021-2025) are currently under implementation. This translates to 337 out of 430 strategic programmes that have so far been put into effect, she said.
By the end of July 2023, a total of 1,915 projects were approved, with a developmental budget of around RO 8 billion, she said. The majority of the projects are related to infrastructure (940), followed by social infrastructure (524 projects), service production (258 projects) and goods production (193).
According to data from the National Competitiveness Office, Oman has made progress in several indicators, including the Economic Freedom Index, where it achieved a ranking of 95 out of 184 countries in 2023. In addition to ranking 46th out of 121 in the Soft Power Index and 35 out of 113 countries in the Food Security Index.
However, Oman fell by 4 positions in the Economic Complexity Index, ranking at 73 out of 134 countries in 2022. Additionally, Oman fell by 2 positions in the Global Innovation Index, where it was ranked 79 out of 132 countries in 2022.
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