#Oman’s economy set to recover in 2021: IMF | ZAWYA MENA Edition

Oman’s economy set to recover in 2021: IMF | ZAWYA MENA Edition

Oman’s economy is set to recover in 2021, with non-hydrocarbon GDP growth of 1.5 percent as vaccine rollout gradually restores domestic activity along with the recovery of external demand, said the International Monetary Fund (IMF).

Oil production is projected to increase after the current Opec+ agreement expires in April 2022 said the Executive Board of the IMF as it concluded the Article IV consultation with Oman. Inflation has been subdued, it added.

The Omani economy was hit by a dual shock of the pandemic and a collapse in oil prices in 2020. Overall and non-hydrocarbon GDP are estimated to have contracted by 2.8 percent, and 3.9 percent, respectively. Labour market adjustment was facilitated by temporary wage cuts and a reduction in expatriate employment. The

The fiscal deficit and government debt rose sharply in 2020 but are projected to improve considerably over the medium term with the implementation of the authorities’ Medium-Term Fiscal Balance Plan.