Oman Economic Review - August 2009 (PDF)

Omani economy witnessed a significant GDP growth rate in 2008 thanks to increasing Omani crude oil prices which averaged US$101.1/bbl for the year. As per Omani official provisional estimates, GDP reached RO23.04bn in 2008 as compared to RO16.01bn, or 44% growth rate. On CAGR basis, Omani GDP scored a record growth rate of 22.7% over the period 2003-08. As a result of the robust economic growth over the period, GDP per capita followed the same trend reporting a high CAGR of 17.6%. Per capita GDP increased significantly from US$9,190.4 in 2003 to a record level of US$20,648.6 by the end of 2008.

Looking forward, the Omani economy might be facing the challenge of sustaining economic growth for 2009 and 2010. However, on the bright sight are the prudent government policies on the monetary and fiscal fronts. Both polices are expansionary amid a scenario of looming recession for the world economy. Moreover, reaping the benefits of diversification plans will help sustain marginal economic growth. Finally, the declining inflation level is another factor that might help mitigate the impact of the financial crisis. Thus Omani economy is estimated to report a marginal real growth of 1.9% for 2009 before recovering by the end of 2010.