Muscat - The financial indicators for the first quarter of this year confirmed the recovery of the national economy, after the state's general budget achieved a surplus of more than RO300 million.
According to officials and experts, the improvement in financial performance during Q1 of 2022 confirms the recovery of the economy due to measures made by the government, aided by the oil prices in global markets.
Dr. Nasser bin Rashid al Maawali, Undersecretary of the Ministry of Economy, said that the improvement in the financial performance is due to measures taken by the government and that the budget surplus will be used to stimulate growth, enhance spending on priority development projects and reduce the level of public indebtedness.
He said that the continued improvement of financial indicators will help to meet the goals of the medium-term financial balance plan for the year 2020-2024, especially to reduce public debt and increase spending on priority development projects.
Al Maawali said the budget surplus will help in pumping liquidity to support the private sector and revive the economic and commercial activities. During the first quarter of the year, the Ministry of Finance paid about RO146.4 million in dues to the private sector.
He said the investment expenditures increased by about 131 percent during the first quarter of this year to reach about RO150 million, compared to the first quarter of last year, which will directly contribute to economic growth, job opportunities for citizens, and ease the burden of public debt service, as spending on the loan interest amounted to about RO291 million.
"The current level of oil prices and the increase in production in the Sultanate of Oman helped in the speed of economic recovery, as production averaged 1,025 barrels per day in the first quarter of this year, which will support the growth rates of the oil sector, as the latest estimates of the International Monetary Fund and the World Bank indicate that the GDP growth is about 5.6 percent this year, supported by the growth of the oil sector and the non-oil sector by about 8 percent and 2 percent, respectively, and this is the highest expected growth rate among the GCC countries."
He said the various measures taken by the Sultanate of Oman to improve the business environment have prompted international credit rating institutions such as Standard & Poor's (S&P) and Moody's to improve the future outlook, which is a positive factor that contributes to attracting more foreign investments.
Dr. Khalid bin Saeed al Ameri said explained that the payment of more than RO146 million as dues to the private sector at the end of the first quarter of this year, gives a strong boost to liquidity in the market in particular and the economic growth in general.
Mustafa Ahmed Salman, CEO of the United Securities Company, stated that the budget achieved positive results for the first quarter, driven by the im
Oman Observer is now on the WhatsApp channel. Click here
