MUSCAT: The Sultanate of Oman’s Gross Domestic Product (GDP) will grow by 5.6 per cent in 2022 and by 2.7 per cent in 2023, said the recent report of the International Monetary Fund (IMF) titled “World Economic Outlook”.
The report indicated that the Sultanate of Oman’s current account balance is expected to go up by 5.9 per cent during 2022 and by 5.6 per cent during 2023. The IMF also indicated that the inflation rate is expected to rise by 3.7 per cent in 2022 and 2.2 per cent in 2023.
Meanwhile, the IMF painted a grim picture of higher inflation and repercussions from Russia's ongoing war on Ukraine.
The new forecast says global economic growth will now likely be at 3.6 per cent for 2022. That is another drastic reduction in the outlook, primarily due to unprecedented economic pressures. In January the IMF had already lowered its global economic forecast for 2022 by half a percentage point, to 4.4 per cent.
"Global economic prospects have been severely set back, largely because of Russia's war on Ukraine," IMF chief economist Pierre-Olivier Gourinchas said in a press release. "The effects of the war will propagate far and wide, adding to price pressures and exacerbating significant policy challenges."
INDUSTRIAL SECTOR
The industrial sector in the Sultanate of Oman is among the sectors targeted by the government as part of its economic diversification strategy. The sector is witnessing an increasing attention by the government in order to realise the goals it has envisaged for the industrial sector.
The industrial sector contributed RO 6.6 billion to the GDP by the end of last year, and the sector is expected to see more growth as the government is doing much to encourage investments, improve the business environment, support industrial innovation, and roll out attractive investment opportunities in the industrial sectors. - Agencies
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