Muscat: In its annual report for the year 2023, the Central Bank of Oman (CBO) has reaffirmed the continuation of positive economic growth in Oman, attributed to the recovery of non-oil sectors.
The CBO report highlights that the local inflation rate has remained relatively low, a testament to the effective implementation of financial and foreign policies by the government. This has led to a favorable surplus in 2023, in addition to a significant reduction in public debt compared to the previous year.
The report indicates that the Gross Domestic Product (GDP) experienced a growth rate of 1.3% compared to the previous year's rate of 9.6%, attributed to a reduction in production levels agreed upon by OPEC +, which in turn contributed to a GDP growth of 0.4% in the previous year, with the non-oil GDP showing a remarkable growth of 2.4% at an actual value, a significant increase from 9.1% in 2022.
The CBO report suggests that the primary drivers of growth in the non-oil GDP for 2023 are the agriculture and fisheries sectors, which saw a growth rate of 6.9%, and the services sector, which experienced a growth rate of 3.5%. Conversely, the activities within the non-oil industrial sectors saw a slight decline of 0.4%.
Throughout the year 2023, Oman maintained a commendable reduction in the inflation rate, dropping to 0.9%, which is lower than the rate observed in the previous year.
The financial position of Oman continued to strengthen, with a maintained good surplus in 2023, with the financial surplus reaching 2.2% of the GDP. Additionally, the reduction in public debt to GDP ratio to 36% at the time of the Sultanate's credit rating saw a continued positive improvement.
The banking sector in Oman demonstrated an improvement in performance, with the total assets of the sector increasing by 7.8% to reach OMR 41.8 billion by the end of 2023, and an increase in total credit granted to OMR 30.5 billion, marking a 4.3% increase.
The total deposits also saw a notable increase, rising to OMR 29.1 billion, marking a 12.3% increase.
The report anticipates that oil prices will remain stable, providing essential support to the oil sector. It is also expected that non-oil growth will gradually increase, aiming for a medium-term growth rate of 3%, driven by the recovery in global demand, ongoing reforms, and the attraction of large-scale investment projects.
