After a visit to Oman, the International Monetary Fund forecast its GDP growth would be 1.3% this year, from 4.3% in 2022.
The IMF said Oman’s economic growth is set to rebound in 2024, supported by higher hydrocarbon production and stronger non-hydrocarbon growth.
“The economic outlook remains favorable ... fiscal and current account balances are projected to remain in surplus over the medium term albeit trending down along with oil prices,” said Cesar Serra, who led the staff visit to Muscat.
"Nevertheless, the outlook is subject to high uncertainty, including from oil price volatility, global economic and financial developments, and potential indirect spillovers from the ongoing conflict in Gaza," it said in a statement.
Reforms need to continue, said the IMF.
"Sustaining the momentum of fiscal reforms remains, however, key to entrenching fiscal sustainability and ensuring intergenerational equity," the statement said, with implementation of planned taxes and energy subsidy reform both still priorities.
Oman was upgraded by credit rating agencies earlier in 2023.