Muscat, 12 Jul (ONA) — Moody’s has stayed Oman’s past rating at “Ba3”, a future outlook that proves the Sultanate stood the challenge of fluctuating oil prices’ impact on its local economy, coupled with the hefty volume of current financial needs of the State Budget.
In a report it issued today, Moody’s referred to a 2.6% growth in the Sultanate’s Gross Domestic Product (GDP) in 2021 and a projected 3.5% GDP growth in 2022, along with prospects of improvement in the State Budget deficit from -18.1% in 2020 to -3.6% in 2021.
The report also forecasts a decline in public debt to GDP by a different of 10% over 2020 standing, in addition to a decline in current account deficit to GDP from -13.4% in 2020 to -2.3% in 2021.
International agencies have stayed the Sultanate’s creditworthiness since mid-2020 despite adverse external factors impacting the Sultanate’s economy. This proves the significance of financial measures and economic initiatives undertaken by the Sultanate, including the medium-term fiscal plan (2020-2024), which targets financial stability and the realization of fiscal surplus by 2025, besides cutting down public debt.
The International Monetary Fund (IMF), in its latest report following Article 4 consultations, projected the recovery of the Sultanate’s local economy, which is expected to rebound and achieve about 3% growth in medium term.
The Ministry of Finance has reiterated its persistent efforts to rectify the current financial position, achieve fiscal sustainability and improve prospects of economic growth through the application of concerted plans and financial and economic measures.