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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

GDP set to grow by 2.5 pc next year

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PARIS: The Sultanate’s GDP is expected to grow by 2.5 per cent in 2018 compared to 1.5 per cent in 2016.


This was revealed in a report published on its website by the Paris-based Euler Hermes Credit Agency.


The agency also forecast that the deficit in the Sultanate’s current account will fall to 11, on its website, of the GDP in 2018 compared to 12 on its website in 2017. The financial deficit is also expected to fall to 7 per cent of the GDP in 2018 compared to 9 per cent in 2017.


The report pointed out that the measures taken by the government contributed in cutting down the budget deficit due to the sharp decline in oil prices in 2016. The measures included increasing corporate tax rate to 15 per cent from 12 per cent and removing various tax exemptions.


The agency added that the measures aimed at facing the sharp drop in revenues due to steep fall in oil prices.


The agency noted that the modest recovery in oil prices in 2017 (average $54 per barrel, compared to $45 in 2016) should help improve state revenues and narrow the fiscal deficit to about 9 per cent of GDP.


“The Omani government was able to almost complete its foreign borrowing plan for this year by issuing $5 billion of international bonds in March 2017,” the report added.


The agency pointed out that the major strengths of the Sultanate include strategic location on the Strait of Hormuz


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