According to Moody’s, “the likelihood that oil prices will continue to climb in the coming years offers the government further time to advance its financial and economic reform objectives.”
The International Monetary Fund projects that Oman’s GDP will increase by 4.3% in 2022 as a result of strong oil prices, fiscal changes, and advancements in structural reforms supporting the country’s recovery from the effects of the Corona pandemic.
In order to relieve strain on the public finances and improve its capacity to service its debt, Oman looked to posting a budget surplus in the first half of 2022.
Due to increased oil income, fiscal restraint, and the implementation of value-added tax, the IMF anticipates Oman to post budget surpluses in 2022 and throughout the next few years. In comparison to last year, when it was 62.9% of GDP, the central government’s debt is predicted to decrease to 44 percent in 2022.
The Sultanate of Oman’s outlook is now “positive” according to Moody’s.
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