The Ministry of Economy has affirmed that financial and economic indicators for 2022 and during the first quarter of 2023 reflect the potential of Oman’s economy to overcome challenges and set the economy as a basis for thriving and competitiveness.

Dr. Nasser Rashid Al Ma’awali, Undersecretary of the Ministry of Economy, said that the current economic indicators are important gains for Oman’s economy, which will reflect positively on the economic development process.

In a press statement, Al Ma’awali that the Gross Domestic Product (GDP) at current prices for 2022 posted an increase of 30 per cent, to reach RO44,089.5mn, thus achieving a growth rate at constant prices of 4.3 per cent during 2022, compared to a growth of 3.1 per cent in 2021.

He added that the Omani economy has achieved an interim gain by reaching about RO44bn during 2022, which is an indication of the strength of the recovery.

He explained that this boom was driven by the growth of oil and gas production at rates of 9.6 per cent and 3.7 per cent, respectively, in 2022, compared to 2021. This growth is also attributed to the government’s initiatives that target activating sectors of production, particularly those related to economic diversification sectors, he said.

He referred to the direct increase in added value, especially for non-oil activities, by 1.6 per cent, to reach RO 24.7bn during 2022. He pointed out that there is a remarkable growth in the converting industries by about 17 per cent, the transport and storage activity by 16.3 per cent and the mining activity by 10.5 per cent.

Despite the increase in inflation rates, which reached about 2.8 per cent in 2022 compared to about 1.5 per cent in 2021, Al Ma’awali stressed, it is still within the internationally accepted rates.

With regard to the financial surplus achieved by the general budget, the undersecretary explained that the state’s general budget posted a financial surplus of RO1.18bn in 2022. He pointed out that the public debt went down to 43 per cent of the GDP by the end of 2022, thanks to the government’s policies to channel surplus to cut down the debt and achieve financial sustainability.

He highlighted the importance of the increase in the trade balance surplus as a result of the growth of commodity exports and the increase in the cumulative value of foreign direct investments, to reach about RO18.14bn by the end of the third quarter of 2022.

The Undersecretary of the Ministry of Economy expected the current indicators and outlook to reflect a positive situation. Focus is laid on maintaining inflation at safe limits, specifically between 2 per cent during 2023, he added.

He said that with the stability of global oil prices at the limits of locally drawn expectations, it is hoped that financial conditions will continue to improve through increased revenues, especially oil ones, thus increasing the surplus of the general budget.

The International Monetary Fund expected the Omani economy to grow by 4.1 per cent in 2023, Al Ma’awali concluded.