Central Bank of Oman publishes IMF Article IV mission conclusions highlighting stronger growth outlook and a robust banking sector

The Central Bank of Oman published the International Monetary Fund’s preliminary conclusions from its 2025 Article IV consultation mission, summarising discussions on recent economic developments, fiscal and monetary policy settings, and structural reform progress. The IMF’s assessment pointed to strengthening growth momentum, low inflation, and continued resilience in Oman’s banking system. Real GDP growth rose to 1.7% in 2024 (from 1.2% in 2023) and is projected at 2.4% in 2025 and 3.7% in 2026, supported by non-hydrocarbon activity and the gradual lifting of OPEC+ oil production cuts, while inflation was 0.9% year-on-year in the first four months of 2025. The IMF noted a fiscal surplus of 3.3% of GDP in 2024 and a decline in public debt to 35.5% of GDP, with the surplus expected to average 0.5% of GDP in 2025–2026. It also reported a current account surplus of 2.2% of GDP in 2024, with a modest deficit projected in 2025–2026 before a return to surplus, and highlighted ongoing reforms including State Owned Enterprises governance improvements, tax administration modernization, and renewable energy and green hydrogen initiatives. The banking sector assessment cited strong asset quality, capital and liquidity buffers, profitability, and solid private-sector credit growth, alongside progress by the Central Bank of Oman in enhancing its liquidity management framework and broader financial inclusion initiatives.