The International Monetary Fund (IMF) has lauded Oman’s performance, however, projected the economic growth to slow down to 1.3 per cent in 2023 and then rebound to 2.7 per cent in 2024.
In a statement issued, IMF said real GDP grew by 4.3 percent in 2022, primarily driven by a strong expansion of the hydrocarbon sector. “Economic growth is, however, projected to slow down to 1.3 percent in 2023 and then rebound to 2.7 percent in 2024, reflecting oil production cuts by OPEC+ and moderate growth in the non-hydrocarbon sector due to recovering but still subdued construction activity, a slowdown in global economic activity, and tighter financial conditions,” IMF stated.
According to the IMF, the banking sector remains sound as profitability has recovered from pandemic lows. Banks display abundant capital and liquidity buffers. Asset quality remains strong while credit to the private sector continues to expand.
