Fitch Ratings has conducted a review of the economic outlook for the Sultanate of Oman, as it revised its future outlook for the Sultanate to stable from negative with an affirmation of the long-term credit rating at BB-.
This revision reflects the actual improvement and development expected in key fiscal metrics including government debt, GDP and budget deficit, driven by higher oil prices and fiscal reforms, and a reduction in external financing pressures compared to recent years even as external financing needs remain high.
Fitch estimated that the budget deficit will shrink to 3.4 percent of GDP in 2021, from 16.1 percent of GDP in 2020. Fitch also indicated that the government has made progress in implementing its medium-term fiscal plan, which aims to balance the budget and reduce government debt to 61 percent by 2025.
Non-oil revenues grew by 40 percent on an annual basis, while total spending decreased by 6 percent on an annual basis.
Source (CNBC Arabic Website, Edited)
