IMF forecasts 7.4pc growth in Oman's economy in 2022

Oman Sunday 11/April/2021 19:40 PM
IMF forecasts 7.4pc growth in Oman's economy in 2022

WASHINGTON: Oman’s gross domestic product (GDP) is expected to grow by 7.4 per cent in 2022 against 1.8 per cent in 2021, according to outlook of the International Monetary Fund (IMF).

IMF report on prospects of World Economy Outlook (WEO) predicted that inflation in the Sultanate to retreat to 2.4 per cent in 2022 compared to 3.8 per cent in 2021.

Global prospects remain highly uncertain one year into the pandemic. New virus mutations and the accumulating human toll raise concerns, even as growing vaccine coverage lifts sentiment.

Economic recoveries are diverging across countries and sectors, reflecting variation in pandemic-induced disruptions and the extent of policy support.

The outlook depends not just on the outcome of the battle between the virus and vaccines—it also hinges on how effectively economic policies deployed under high uncertainty can limit lasting damage from this unprecedented crisis.

Global growth is projected at six per cent in 2021, moderating to 4.4 percent in 2022. The projections for 2021 and 2022 are stronger than in the October 2020 WEO.

The upward revision reflects additional fiscal support in a few large economies, the anticipated vaccine-powered recovery in the second half of 2021, and continued adaptation of economic activity to subdued mobility.

High uncertainty surrounds this outlook, related to the path of the pandemic, the effectiveness of policy support to provide a bridge to vaccine-powered normalisation, and the evolution of financial conditions.