Economy to grow 5pc next year

Oman’s economy has started to recover and is expected to grow by five per cent in 2019, according to an economist at the Oman Chamber of Commerce and Industry (OCCI).

A report presented by Dr Abdul Salam Yahya, Economic Expert at OCCI, said the Omani economy has started recovering since the last quarter of 2016 after a period of slowdown that started towards the end of 2014.

“It is expected that the economy will continue to perform and achieve a growth of five per cent in 2019. Statistical estimates indicate the gross domestic product (GDP) will be in the range of RO 28-29 billion on average,” the report said.

Economic growth in the GCC states is expected to reach 2.4 per cent in 2018 and 3 per cent in 2019, following a 0.4 per cent contraction in 2017, the International Monetary Fund (IMF) had said

in its latest forecast.

In the near term, “higher oil prices and a slower pace of fiscal consolidation” are supporting a positive outlook for most oil exporting countries, it said.

Bahrain, Kuwait, Oman and Qatar are expected to post a GDP growth of 2.6 per cent, 4.1 per cent, five per cent and 2.8 per cent respectively in 2019. All this will certainly depend on oil prices, a senior Oman-based economist told the Observer.

Oil prices have still lost around 30 per cent in value since early October, weighed down by an emerging supply overhang and by widespread weakness in financial markets, according to reports.

The crude oil price slump since October is so far on par with the 2008 price crash and steeper than that of 2014-15.

Organisation of Petrol Exporting Countries (Opec) will meet at its headquarters in Vienna, Austria, on December 6 to discuss the output policy. While most analysts expect some form of supply cut from the Opec meeting, sentiment in oil markets remains negative.

OCCI’s Committee of Economic Affairs, Research and Studies, met under the chairmanship of Ahmed bin Abdulkarim al Hooti, Chairman of the committee, to discuss the performance of the national economy in 2019 along with a number of issues, including the establishment of representative offices that will promote Omani products in foreign markets.