Muscat: The IMF estimates that the country’s gross domestic product (GDP) will rise to 4.3 percent this year. The main reason behind the increase in GDP is the increased production of petroleum products and the discovery of non-oil sources of income. According to a statement released by the IMF, Oman’s GDP for 2020 was down. GDP in 2020 was -3.2 percent. It has increased to three percent in 2021. Strong vaccination efforts implemented by Oman and all the covid restrictions including social distancing have given a fresh wake up call to the economic sector.
IMF has also assessed that this has led to economic growth in the country. The rise in oil prices has helped a lot in improving Oman’s economy. The economic sector of the country has been blessed with the increase in revenue from oil as well as reduction in expenditure and implementation of VAT. The banking sector is also progressing in a healthy manner. Oman Central Bank’s monitoring and high reserve holdings are a boon to the banking sector.
According to the report, although global inflation will rise to three percent in 2022, the Russia-Ukraine war has only had a small negative impact on Oman’s economic sector. Gross Domestic Product or GDP is the market value of goods and services produced in a given region during a given period. It is an index to measure the economic strength of a country.