Oman’s economy flourishes on the back of fiscal reforms and low inflation

Oman’s economy continues to grow, with low inflation and ongoing reforms improving its fiscal position, according to the IMF.

In 2023, the economy grew by 1.2%, and by 1.9% in the first half of 2024, despite OPEC+ oil production cuts.

The non-oil sector expanded by 3.8% in the first half of 2024, driven by growth in construction, manufacturing, and services.

Inflation fell to 0.6% from January to September 2024, down from 0.9% in 2023.

Economic growth is expected to reach 1.2% in 2024 due to oil production cuts, but a stronger recovery is expected in 2025.

Oman’s fiscal and current account balances are in surplus, with public debt decreasing.

Oman continues to make progress with Vision 2040 reforms, including a new social protection law and improvements to the business environment.

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