Oman Economy to Grow by 2.5%

Oman’s gross domestic product is expected to grow by 2.5% in 2018, up from 1.5% in 2016, the Euler Hermes Credit Agency said in a report published on its website, ONA reported. The agency also forecast that the deficit in the Sultanate’s current account will fall to 11% of the GDP in 2018, compared with 12% in 2017. The financial deficit is also expected to fall to 7% of the GDP in 2018, down from 9% in 2017. It pointed out that the measures adopted by the government have contributed to the decline in the budget deficit, due to the sharp drop in oil prices in 2016. The measures included increasing the corporate tax rate to 15% from 12%, and removing various tax exemptions. It also noted that the modest recovery in oil prices in 2017 (average $54 per barrel year-to-date, compared with $45 in 2016) should help improve state revenues and narrow the fiscal deficit to about 9% of the GDP.