Muscat: The CBO report revealed that real GDP grew by 1.3% in 2023, a decrease from the 9.6% growth in 2022, mainly due to production cuts by the OPEC Plus group. Non-oil GDP saw a modest 2.4% growth, led by agriculture, fishing, and services sectors, which rose by 6.9% and 3.5%, respectively. In contrast, non-oil industrial activities declined by 0.4%.

Inflation fell to 0.9%, down from 2.5% in 2022, benefiting from strong monetary and fiscal policies. Oman also recorded a financial surplus of 2.2% of GDP, reducing public debt to 36.0%, an improvement from 40.2% in 2022. Favorable oil prices and effective financial measures were cited as key contributors to this achievement.

The banking sector showed positive performance, with total assets rising by 7.8% to reach RO 41.8 billion. Total credit granted increased to RO 30.5 billion, and total deposits saw a robust growth of 12.3% to RO 29.1 billion. Non-performing loans remained low at 4.5%, while the capital adequacy ratio stood at 18.9%.

Oman’s external sector remained resilient, with a trade surplus contributing to a positive current account balance of RO 1.014 billion. The financial account also saw net outflows of RO 1.227 billion due to government and corporate debt repayments.

Looking ahead, Oman’s macroeconomic outlook remains favourable, supported by Oman Vision 2040 and stable energy prices. Non-oil growth is expected to rise to 3% in the medium term, driven by global demand recovery and continued reforms. Fiscal consolidation measures are projected to improve the country’s financial position in 2024.