Oman’s GDP growth to remain strong in 2014 – IMF

By bne IntelliNews May 13, 2014

Oman’s economic performance was strong in 2013 as the real non-hydrocarbon sector grew by 5.5% last year and will remain the same in 2014, the IMF said in a statement following a two-day workshop at the central bank of Oman.

The sultanate’s fiscal and external sectors have posted surpluses in 2013 at over 5.5% and around 10.0% of GDP, respectively, the IMF estimated.

Fiscal and external surpluses are expected as well in 2014, though of lower magnitude, according to the IMF.

The IMF has warned that Oman’s fiscal situation might deteriorate over the next three years. Oman’s state budget might slip into a 3.8% of GDP deficit by 2015, the IMF recently forecast.

The new state budget for 2014 implies a 5% y/y increase in spending to OMR 13.5bn and a 4.5% y/y growth in revenue to OMR 11.7bn. The 2014 state budget thus forecasts an OMR 1.8bn (USD 4.7bn) deficit, accounting for 6% of the projected GDP. The new budget assumes a conservative oil price of USD 85 per barrel. 

The IMF underscored that Oman’s public investment program is expected to help maintain non-hydrocarbon growth around 5.0% over the medium term. The banking system also remains profitable and stable, the IMF noted. The sector had an average return on assets of 1.6% as of December 2013, return of equity at 11%, capital adequacy ratio of 16.2%, and gross non-performing loans of 2.1%, the IMF estimated.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Trump warns US pullout from "horrible" Iran nuclear deal might still be ahead

US President Donald Trump on October 16 warned that the termination of the Iran nuclear deal is still a clear possibility even though he ... more

Pentagon chief suggests staying in Iran nuclear deal is in US interests

US Defence Secretary Jim Mattis on October 3 told the Senate Armed Services Committee that it currently appears to be in the strategic interest of Washington to remain in the Iran nuclear deal. ... more

Iran will in six years accept stricter nuclear inspections if US behaves, says foreign minister

Iran’s foreign minister has said the country is willing to formally accept a tougher nuclear inspection regime in six years. However, Mohammad Javad Zarif continued to rule out any renegotiation of ... more

Most Read

  1. Moldova's Ascom moves ahead with recovering $500mn from Kazakh state
    7 days ago
  2. INTERVIEW: The quiet thunder of Ruben Vardanian
    9 days ago
  3. INTERVIEW: de Villepin says Ukraine should declare itself neutral
    9 days ago
  4. KRUK REPORT: Is Ukraine changing its Donbas policies?
    4 days ago
  5. MOSCOW BLOG: Russia’s import substitution has not been a great success
    7 days ago
  1. STOLYPIN: Russia balances wargames with mindgames in Zapad exercises
    27 days ago
  2. Russia to bring in record breaking harvest of 127mn tonnes
    18 days ago
  3. Investors ask which Russian bank domino will be the next to topple
    24 days ago
  4. Eastern Europe’s blockchain revolution
    12 days ago
  5. INTERVIEW: de Villepin says Ukraine should declare itself neutral
    9 days ago

Selected articles from our premium news/views wire IntelliNews Pro

Login to IntelliNews Pro
Get IntelliNews Pro

Reports

Dismiss