MUSCAT: A new report from the Institute of International Finance has predicted that the non-oil sector in Oman will witness a strong growth in 2022.
The report pointed out that the growth of the non-oil sector in the Sultanate of Oman is expected to reach 3.5 percent in 2022, compared to 2.5 percent in the previous year.
The report further explained that the non-oil sector in the Gulf Cooperation Council countries is expected to register a growth of 4.8 percent in 2022, which is one of the highest growth rates among developing and emerging economies.
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The Institute of International Finance said that high oil prices will limit the indirect impact of an increase in interest rates, by the US Federal Reserve, on non-oil economic growth in the Gulf Cooperation Council countries.
It stated that the impact of the tightening of US monetary policy on the real non-oil GDP of the Gulf Cooperation Council also depends on the fiscal policies adopted by the six member states of the Gulf Cooperation Council.
The report highlighted that during the past several decades, high global oil prices have offset the negative growth impact of monetary policy tightening in the GCC countries, as high oil prices improve the domestic liquidity position, leading to relatively expansionary fiscal policies and increase credit available to the private sector. This also puts downward pressure on interbank rates.
