“The possibility that oil prices will continue to rise in the next few years gives the government additional time to move forward with its financial and economic reform plans,” Moody’s said.
The International Monetary Fund expects Oman’s GDP to grow by 4.3 percent in 2022, as high oil prices, fiscal consolidation measures, and progress in structural reforms support the economic recovery from the repercussions of the Corona pandemic.
Oman turned to recording a budget surplus in the first half of 2022, which eases pressure on public finances and enhances its ability to meet its debt obligations.
The IMF expects Oman to record fiscal surpluses in 2022 and in the medium term, mainly due to higher oil revenues, fiscal discipline and the implementation of value-added tax. He added that central government debt is expected to fall to 44 percent of GDP in 2022, compared to 62.9 percent last year.
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