Oman’s economy registers broad-based recovery

Muscat: After economic slowdown and contraction witnessed during the years 2015 and 2016, the Omani economy registered a broad-based recovery and grew in nominal terms by 10.1 per cent during the first nine months of 2017. Hydrocarbon and non-hydrocarbon sector grew by 23.9 per cent and 4.9 per cent, respectively during this period.
The upturn in the economy was mainly driven by recovery in crude oil prices and the positive impact of diversification efforts. Promotion of non-oil exports and tourism related activities is at the centre of diversification programs.
The average price of Omani crude oil during 2017 stood at $51.3 per barrel as against $40.1 during the previous year. The government’s fiscal consolidation measures together with the recovery in oil prices had a salutary effect on the fiscal position too.
Inflationary conditions in the Sultanate generally remained benign with the average annual inflation based on CPI for the Sultanate during January 2018 at 1.1 percent. The financial health of banks in terms of asset quality, provision coverage and capital adequacy remained strong.