Muscat: The economic recovery in the Sultanate is gaining traction, as domestic demand improves and market sentiment becomes more conducive to growth. Also, the sustained increase in oil prices coupled with strong external demand will give non-oil activities the needed stimulus. The diversification policy continues to add more strength to sustainable economic growth.
Oil prices saw further gains and the price of Omani crude oil averaged US$63 a barrel between January and May 2018, as against US$51.6 a barrel during the same period last year.
Reflecting the significant surge in oil prices, in addition to fiscal consolidation efforts that began in 2015, the budget deficit witnessed a marked decline reaching OMR1.09 billion during January-May 2018 compared with OMR2.03 billion during the same period last year. Further, the rise in oil prices reflected positively on the current account balance. The Inflationary conditions in Oman generally remained benign, with the average annual inflation based on CPI for the Sultanate during January-May 2018 at 0.4 per cent.