NCSI Releases Second Issue of Sultanate Economic Outlook

Muscat, The National Centre for Statistics and Information (NCSI)

released the second issue of the Economic Outlook of the Sultanate, which highlighted the

economic performance of the Sultanate during 2017. It also laid emphasis on the global

economic developments and the prospects for growth.

According to the projections of the Arab Monetary Fund (AMF), the Sultanate’s economic

growth rate is expected to reach 2.8% in 2019. This came as a result of policies persued

to diversify production, stimulate private sector investment, improve the business

environment, and boost competitiveness.

The inflation rate in the Sultanate of Oman is expected to rise from 1.6% in 2017 to 3% in

2019.

Global economic is expected to grow by 3.9% in 2019. This is according to the

projections of the International Monetary Fund (IMF). The growth rate of developed

economies is projected to grow by 2.2% in 2019.

Emerging and developing economies expected economic growth is 5.1% in 2019. The

growth of world trade in goods and services is expected to reach 4% in 2019.

According to forecasts of the Organization of Petroleum Exporting Countries (OPEC), the

total global average demand for oil in 2019 is expected to reach 100.2 million barrels per

day, which is an increase compared to 98.8 million barrels per day in 2018. The average

demand for non-OPEC oil in 2019 is expected to reach 61.7 million barrels per day, which

is an increase compared to 59.6 million barrels per day in 2018.

This report, which is released annually to analyses general economic situation of the

Sultanate during the year, covers several topics and key indicators, namely Gross Domestic

Product (GDP), public finance, monetary indicators, inflation and trade. It is aimed to exam

the features of the Sultanate’s economy objectively and transparently. This is based on

available statistical data and information, as well as important international reports released

by the World Bank, IMF, Arab Monetary Fund (AMF) and other international and regional

bodies that monitor changes in global economic situations, as well as show important

economic prospects in view of the opinions of experts.

According to the report of the IMF, the world economy grew by 3.7% in the year 2017,

and the developed economies grew by 2.4% and emerging and developing economies by

4.7%.

At the level of the Arab countries, the Arab Monetary Fund report indicated that the rate of

economic growth of the Arab countries at constant prices declined to about 0.9% in 2017,

compared to 2.2% in 2016. Similarly, the economic growth rate of GCC countries

decreased by 0.3% during the same year.

The report highlighted economic performance of the Sultanate in 2017, when there was a

growth of GDP by 3.7% at current prices, with an increase in the value added of oil activities

by 18.1% and non-oil activities by about 3.3%.

The deficit in the general budget of the Sultanate was of RO3.8 billion. Public revenues

increased by 12% to reach to RO8.5 billion, while total public expenditure decreased by

4.9% to reach to RO12.3 billion.

With regard to foreign trade indicators, the report indicated that the trade balance surplus

by the end of 2017 was RO.2.1 billion.

Regarding monetary indicators, total domestic liquidity M2 increased by 4.2%, and the

average interest rate on total nominal loans was 5% in 2017.

Source: Oman News Agency