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Officials, experts hail recovery of Oman's economy

Oman Saturday 21/May/2022 17:08 PM
By: Times News Service
Officials, experts hail recovery of Oman's economy

Muscat: Officials and experts affirmed that the improvement in financial performance during the first quarter of this year confirms the recovery of the national economy after the state’s general budget achieved a financial surplus that exceeded OMR 300 million, which reflects the efforts and government measures made in this direction, supported by the rise in oil prices in global markets. .

His Excellency Dr Nasser bin Rashid Al Maawali, Undersecretary of the Ministry of Economy, said: “The improvement in the financial performance of the Sultanate of Oman by the end of the first quarter of this year reflects the efforts and measures taken by the government to ensure the sustainability of financial and economic conditions, supported by the stability of average global oil prices," adding that the financial surplus will be directed to stimulate growth.

His Excellency explained in a statement to the Oman News Agency that the economic and financial indicators of the economic performance are very reassuring, and the improvement in the financial performance of the Sultanate of Oman indicates that the Omani economy is a recovering economy, and the improvement in financial performance will contribute to accelerating the re-energy of economic growth and accelerating the pace of growth of economic activities.

His Excellency said that the continued improvement of financial performance and the recording of a surplus in the state's general budget during the first quarter of this year is a positive and very important factor to ensure the achievement of the medium-term financial balance plan for the period 2020-2024, especially in directing those surpluses achieved in order to reduce public debt levels and stimulate economic recovery and increased spending on priority development projects.

His Excellency stressed that the opportunities for comprehensive economic recovery have become better, especially for the sectors most affected by the pandemic, and on the other hand, the state’s general budget achieved a financial surplus at the end of the first quarter of 2022 by about OMR 357 million, compared to recording a financial deficit of OMR 751 million, in the same period of 2021, directly helps in pumping liquidity to support the private sector and revive economic and commercial activity. During the first quarter of the year, the Ministry of Finance paid about OMR 146.4 million

dues paid to the private sector.

His Excellency pointed out that in the short term, economic policy makers will be able to move between more expanded options in order to develop the basic economic infrastructure necessary to stimulate private investment, accelerate the implementation of major development projects, and create the optimal environment to attract more foreign direct investment as an investment for the achieved economic gains and financial expectations.

His Excellency indicated that the increase in investment expenditures by about 131 per cent during the first quarter of this year to reach about 150 million Omani riyals, compared to the first quarter of last year, directly contributes to enhancing productive activities, raising economic growth rates and providing job opportunities for citizens.

His Excellency the Undersecretary of the Ministry of Economy added: The current level of oil prices and the increase in production in the Sultanate of Oman helped in the speed of economic recovery, as production averaged 1,025 barrels per day in the first quarter of this year, which will support the growth rates of the oil sector, as the latest estimates of the International Monetary Fund and the Bank indicate The international GDP growth is about 5.6 per cent this year, supported by the growth of the oil sector and the non-oil sector by about 8 per cent and 2 per cent, respectively, and this is the highest expected growth rate among the GCC countries.

His Excellency stated that the remarkable improvement in financial performance and the various measures taken by the Sultanate of Oman to improve the business environment have prompted international credit rating institutions such as Standard & Poor's (S&P) and Moody's to improve its future outlook for the Sultanate, which is a positive factor that contributes to attracting more of foreign investments.