MUSCAT: Oman’s debt declined to 62.9 percent of GDP in 2021 and it is expected to decline to about 44 percent of GDP in 2022, the International Monetary Fund said in a report.

According to IMF, Oman’s economic recovery is gaining traction, supported by a revival in the hydrocarbon sector and the relaxation of Covid-19 social restrictions.

“Overall GDP growth rebounded from -3.2 percent in 2020 to 3.0 percent in 2021, and is projected at 4.3 percent in 2022, supported by increased hydrocarbon production and continued recovery of non-hydrocarbon economic activity,” said IMF official Daniel Kanda.

“High oil prices and fiscal consolidation under the authorities’ Medium-Term Fiscal Plan (MTFP), have improved fiscal and external balances considerably. The overall central government balance improved by 12.8 percentage points of GDP to a deficit of 3.2 percent in 2021, largely due to higher hydrocarbon revenue, expenditure restraint, and the introduction of VAT,” IMF added.

“The authorities continue to press forward with a broad array of structural reforms under Oman Vision 2040, with the goal to achieve the strong, job-rich, and sustainable private sector-led growth needed to offer opportunities to job seekers and ensure higher living standards for future generations. Key priorities include enhancing labour market flexibility, boosting female employment, improving the business environment, advancing SOE reforms, leveraging digitalization, and continuing the implementation of green initiatives.” IMF stated.

IMF mission team led by Kanda conducted discussions in Muscat for the 2022 Article IV Consultation for Oman from September 20 to October 4, 2022.