Regular government review to help better Oman’s credit ratings: Ministry of Economy

Muscat: Regular review by the government of the economic and financial measures will strengthen Oman’s financial position and improve its credit ratings with regards to the social protection policies implemented, Undersecretary of the Ministry of Economy said on Monday.

His Excellency Dr.Nasser bin Rashid Al Mawali, the Undersecretary of the Ministry of Economy said: "The International Monetary Fund (IMF), forecasts a rapid recovery of the Oman's economy in its latest Global Economic Outlook report. The IMF has adjusted its forecasts on Oman's economy to a real positive economic growth of 1.8 per cent during the year 2021 compared to its previous forecast of a -0.5 per cent contraction in the same year. The IMF also indicated that Oman's economy may record a real growth of 7.4 per cent during the year 2022."

The Undersecretary confirmed: “According to an IMF report, Oman's economy suffered during 2020 from a contraction estimated at 6.0 per cent due to the impact of Covid-19 Pandemic on the global economy in general. IMF's revision of its estimates of a 6.0 per cent global economic growth compared to previous estimates of 5.5 per cent are based on the expansionary financial measures of major economies on the one hand and the expected recovery as a result of the spread of vaccines on the other hand."

"IMF's positive estimates of Oman’s economic situation are in the line with Standard & Poor's affirmation of Oman's long and short-term sovereign credit rating at “B + / B” in April 2021 while maintaining a stable outlook." He further indicated that the net government debt is expected to stabilise at high levels, due to rise in oil prices and the current financial reform plan.