Omani Economy Shows Resilience with 1.9% Real GDP Growth in First Half of 2024
Muscat: The Central Bank of Oman (CBO) has released its 2024 Macroeconomic Stability Report, providing a comprehensive analysis of the nation’s economic performance and resilience amid global uncertainties. The report evaluates economic stability, identifies key risks, and offers forecasts for the medium-term outlook.
Despite external challenges such as global inflation, energy supply disruptions, rising interest rates, and economic uncertainties, Oman’s economy has demonstrated strong resilience. The report highlights that real GDP grew by approximately 1.9% in the first half of 2024 compared to the same period in 2023. This growth was primarily driven by a 3.6% increase in non-oil economic activities.
While the oil sector remains a crucial pillar of the economy, contributing around 32.5% of total real GDP in the first half of 2024, Oman continues to face risks from fluctuating global oil prices and supply chain challenges. To mitigate these vulnerabilities, the government has been actively implementing fiscal reforms and economic diversification initiatives.
The report underscores Oman’s efforts to enhance public finance management, including strategic spending controls, debt reduction strategies, and revenue diversification. These reforms align with the country’s long-term economic vision and contribute to strengthening the financial framework.
A key highlight of the report is the launch of the Social Protection Program, aimed at balancing social welfare needs while maintaining fiscal stability. Additionally, Oman’s ongoing diversification strategies have played a crucial role in reducing dependency on oil revenues and stabilizing the economy despite lower crude oil prices in 2024 compared to the previous year.
These economic reforms have garnered international recognition, with credit rating agencies upgrading Oman’s sovereign credit rating. This improvement reflects the growing confidence of global financial institutions in the country’s economic policies and structural reforms.
The report also highlights the stability of Oman’s foreign reserves, which stood at approximately OMR 7.5 billion as of September 2024. These reserves are sufficient to cover around 6.6 months of merchandise imports, well above the international benchmark of three months. Maintaining strong foreign currency reserves remains a key priority for ensuring exchange rate stability and sustaining economic confidence.
Looking ahead, the medium-term economic outlook for Oman remains optimistic, with continued expansion in non-oil sectors, strategic investments, and policy-driven growth initiatives. The government’s proactive approach to economic stability, coupled with ongoing structural reforms, is expected to further enhance the country’s financial sustainability and long-term prosperity.
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