The Central Bank of Oman published a summary of the International Monetary Fund’s 2024 Article IV Consultation report for Oman, approved by the IMF Executive Board on 14 January 2025. The update highlights continued economic growth led by the non-oil sector, low inflation, fiscal and current account surpluses, and a resilient banking sector, while underscoring the importance of sustaining reforms and economic diversification. Real GDP grew by 1.9% in the first half of 2024, compared with 1.2% in 2023, with non-hydrocarbon growth rising to 3.8% in the first half of 2024 from 1.8% in 2023, supported by industry, manufacturing and services. Inflation fell to 0.6% in January to October 2024 from 1.0% in 2023, while hydrocarbon activity declined due to voluntary OPEC+ production cuts. The report credits prudent fiscal management, higher oil prices and stronger non-hydrocarbon exports for fiscal and current account surpluses, and notes public debt declined to 35% in 2024 alongside a sovereign credit rating upgrade to investment grade; it also points to banks’ profitability returning to pre-pandemic levels, strong capital and liquidity buffers, high asset quality, and a shift to positive net foreign assets by end-2023 for the first time since 2014. Key risks cited include rising geopolitical tensions and lower oil prices linked to a global slowdown, particularly in China, with potential spillovers to trade, tourism and foreign direct investment. The consultation was based on meetings between IMF staff and more than 20 government and private entities, including the Central Bank of Oman and several ministries and public bodies, and the full report is available on the IMF website.

Original source View in tracker