Muscat: The Central Bank of Oman (CBO) has released its highly anticipated Macroeconomic Stability Report for the year 2023.

The move comes in line with the CBO’s commitment to provide information and statistics and analyse the updated economic developments and as part of its efforts to increase transparency and public disclosure in the Omani banking sector.

The report meticulously analyses the economic landscape using the latest available data, shedding light on recent macroeconomic developments within the Sultanate of Oman while emphasising strengths, weaknesses, and potential risks.

The report highlights a notable upswing in both real and nominal GDP during 2022, primarily attributed to the surge in oil prices. This surge not only spurred growth in both oil and non-oil sectors in an unprecedented manner but also bolstered control over public financial conditions, resulting in a surplus in the public finance balance.

Addressing challenges in formulating the financial budget for 2022, the report underscores the strategic response that fortified the government’s commitment to achieving medium-term financial equilibrium. Unexpected gains from oil revenues and prudent financial management facilitated partial repayment of the public debt portfolio, leading to a reduction in indebtedness.

Furthermore, the report indicates a shift in the current account balance to a surplus in 2022, propelled by an improvement in the trade balance. Additionally, the sovereign ratings upgrade by major rating agencies throughout the year signifies a decrease in perceived systemic risks, marking a testament to the resilience and stability of Oman’s economic foundations.

Moreover, the report highlighted that despite the unprecedented surge in global inflation due to escalating energy and food prices, Oman’s inflation remained comparatively moderate, largely attributed to the fixed exchange rate system, raise the number of essential commodities exempted from VAT, and continuing subsidise fuel prices.

The Central Bank of Oman concluded that the 2023 Macroeconomic Stability Report underscores Oman’s adaptive capabilities in overcoming formidable challenges amid a rapidly evolving global economic landscape.

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