The improvement in the Sultanate’s overall credit rating reflects the improved performance of the economy.
Muscat: The over 180% increase in the trade balance surplus reflects a smart recovery of the Sultanate of Oman’s economy.
As a result of prudent fiscal policy, the trade balance surplus increased by 185.8% to OMR 4.71 billion in the first half of 2022 from OMR 1.65 billion in the same period in 2021.
Goods exports increased by 61% and non-oil exports by 51.2% in the first half of 2022 compared to the same period in 2021.
The Undersecretary of the Ministry of Economy, Dr. Nasser bin Rashid Al Mawali, reaffirmed that there is a tangible improvement in the performance of Oman’s economy which can be noticed in the performance of the general budget and the improvement of the Sultanate’s credit rating by global agencies.
The improvement of the credit rating by the international agencies operating in the field is reflected in the key economic indicators whether at the level of the performance of economic activities or consumer prices and working and employment conditions which represent an essential pillar in the measurement of the economic situation and reflect in one way or another the improvement in the performance of the economy in general.
One of the indicators considered as proof of the same is the growth (at current prices) of GDP during the first half of 2022 by 32.4% to reach OMR 20.26 billion compared to OMR 15.30 billion during the same period in 2021. At a fixed price, GDP improved by 3.9% to reach OMR 17.59 billion during the first half of 2022 against OMR 16.93 billion during the same period in 2021, a he added.
The improvement is accompanied by the increase in the value added to oil activities by 9.2% forming 34.1% of GDP during the first six months of 2022 against 32.5% during the same period in 2021 and increased value added to non-oil activities. activities by 2.1% over the same period in 2022, he said.
He said that other factors contributed to the improvement in economic indicators, including the increase in crude oil prices in world markets coupled with the effectiveness of the financial and economic policies followed by the Sultanate to reap the benefits of these increases, including support for economic recovery efforts during the Covid 19 pandemic. Factors also included a focus on making the best use of oil revenues to achieve fiscal balance and the announcement of a number of development projects, he said.
Speaking on the growth of economic activities in the first half of the current year at fixed prices, he indicated that the transport and storage activity and the hotel stay and catering activity recorded rates notable growth of 29.4% and 29.2%, respectively. Mining activity and manufacturing activity recorded an increase of 15.4 percent and 11.5 percent, respectively, over the same period, he added.