The Central Bank of Oman has published its annual report assessing the country’s macroeconomic and financial performance in 2025 and its outlook for 2026. Real gross domestic product growth accelerated to 2.4 percent from 1.6 percent in 2024, supported by hydrocarbon activity and 3.1 percent growth in nonhydrocarbon sectors. Inflation remained low at 1.0 percent. The fiscal and current account balances recorded deficits of 1.1 percent and 1.2 percent of GDP, respectively, while public debt declined to 34.6 percent of GDP. The banking sector remained well-capitalized and liquid. Total assets rose 9.2 percent to OMR 44.6 billion, credit increased 8.8 percent to OMR 35.3 billion and deposits grew 7.0 percent to OMR 34.0 billion. The gross nonperforming loan ratio was 4.4 percent, while the capital adequacy ratio reached 18.8 percent against a 13.5 percent regulatory minimum. The central bank lowered its policy rate to 4.25 percent by the end of December 2025 in line with U.S. monetary easing and the exchange rate peg. For 2026, the central bank forecasts real GDP growth of 4.0 percent and inflation of 2.6 percent. It projects fiscal and current account surpluses of about 2.5 percent and 4.1 percent of GDP, respectively, supported by favorable oil prices, fiscal discipline, structural reforms and stronger nonhydrocarbon exports.
2026-09-09Central Bank of Oman
Central Bank of Oman reports 2.4 percent growth in 2025, forecasts 4.0 percent in 2026
The Central Bank of Oman reported that real GDP growth accelerated to 2.4 percent in 2025, while the banking sector remained well-capitalized and liquid. It forecasts 4.0 percent growth and 2.6 percent inflation in 2026, alongside fiscal and current account surpluses of about 2.5 percent and 4.1 percent of GDP.