A report issued by the National Bank of Kuwait (NBK), showed that after the difficult conditions experienced by the Omani economy during 2020, the macroeconomic prospects appear brighter thanks to the recovery of the activities of the oil and non-oil sectors.
According to the report, the non-oil sector will register a growth of more than 3 percent in the medium term, supported by the wide-ranging reforms related to the implementation of Vision 2040, and the initial financial reforms, including value-added tax and reducing spending rates, will contribute to reducing the fiscal deficit to 0.5 percent of the GDP in 2024.
The report also shows that the future prospects of the Omani economy are improving, with a potential GDP growth of 2.1 percent in 2021, and then rising to about 3.1 percent on average during the period 2022-2024, as a result of a combination of factors that include rising oil and gas production as well as the government's extensive implementation of structural reforms. However, the reforms related to deficit reduction through fiscal consolidation may negatively affect the growth in the short term.
Source (Al-Rai Newspaper-Kuwait, Edited)
