The (NCSI) released the second issue of the Economic Outlook of Oman, which highlighted the economic performance of the Sultanate during 2017. It also laid emphasis on the global economic developments and the prospects for growth.
According to the projections of the Arab Monetary Fund (AMF), Oman's economic growth rate is expected to reach 2.8% in 2019. This is a result of policies to diversify production, stimulate private sector investment, improve the business environment, and boost competitiveness. The inflation rate in the Sultanate of Oman is expected to rise from 1.6% in 2017 to 3% in 2019. Global economic is expected to grow by 3.9% in 2019. This is according to the projections of the International Monetary Fund (IMF). The growth rate of developed economies is projected to grow by 2.2% in 2019. Emerging and developing economies are expected to economic growth of 5.1% in 2019. The growth of world trade in goods and services is expected to reach 4% in 2019. According to forecasts of the Organization of Petroleum Exporting Countries (OPEC), the total global average demand for oil in 2019 is expected to reach 100.2 million barrels per day, which is an increase compared to 98.8 million barrels per day in 2018. The average demand for non-OPEC oil in 2019 is expected to reach 61.7 million barrels per day, which is an increase compared to 59.6 million barrels per day in 2018.
This report, which is released annually to analyses general economic situation of the Sultanate during the year, covers several topics and key indicators, namely Gross Domestic Product, public finance, monetary indicators, inflation and trade. It is aimed to exam the features of Oman's economy objectively and transparently. This is based on available statistical data and information, as well as important international reports released by the World Bank, IMF, Arab Monetary Fund and other international and regional organizations that monitor changes in global economic situations as well as show important economic prospects in view of the opinions of experts. According to the report of the IMF, the world economy grew by 3.7% in the year 2017, and the developed economies grew by 2.4% and emerging and developing economies by 4.7%. At the level of the Arab countries, the Arab Monetary Fund report indicated that the rate of economic growth of the Arab countries at constant prices declined to about 0.9% in 2017, compared to 2.2% in 2016. Similarly, the economic growth rate of GCC countries decreased by 0.3% during the same year.
The report highlighted economic performance of the Sultanate of Oman in 2017, when there was a growth of GDP by 7.3% at current prices, with an increase in the value added of oil activities by 18.1% and non-oil activities by about 3.3%. The deficit in the general budget of the Sultanate was of OR 3.8 billion. Public revenues increased by 12% to reach to OR 8.5 billion, while total public expenditure decreased by 4.9% to reach to OR 12.3 billion. With regard to foreign trade indicators, the report indicated that the trade balance surplus by the end of 2017 was OR 2.1 billion. Regarding monetary indicators, total domestic liquidity M2 increased by 4.2%, and the average interest rate on total nominal loans was 5% in 2017.
The full version of the issue can be accessed on the NCSI's website www.ncsi.gov.om.