According to a recent World Bank assessment, Oman’s economy will grow fastest within the Gulf Cooperation Council (GCC) in 2023, with growth anticipated to reach 4.3%.
The paper also forecasts that after expanding by 7.3% in 2022, the GCC’s economic growth will fall to 3.2% in 2023 and 3.1% in 2024.
The fall in oil demand, predicted to occur from the high levels seen in 2022, has been blamed for the likely downturn.
The data released by the National Centre for Statistics and Information stated that Oman’s GDP expanded by 30.4% in September 2022 compared to August that year.
Compared to the 2022 period, the growth indicator, gross domestic product at current prices, rose to 32 billion Omani rial by the end of September 2022.
As per NCSI data, the growth rate in Oman’s oil activities, which increased 72.5% year over year up through the end of September 2022, was a significant factor behind the rise.
The information came from the latest NCSI’s Quarterly National Accounts Indicators report.
By the end of the 2022 third quarter, manufacturing activities had grown by 65.6% compared to the same period the previous year, contributing to GDP growth as well.
The NCSI research also assessed important indicators at current and constant prices, the growth rates of economic activity, and other crucial factors boosting GDP for the period ending in September 2022.
However, the West Asia Sultanate saw a decline in construction activity, which slowed by 2.2% at current prices.
On the other hand, Oman’s GDP at constant prices increased by 4.5% in September 2022 to reach 26 billion Omani riyal, primarily due to the oil sector’s 12% gain.
Service-related activities also contributed, rising by 5% throughout that time.
As per analysts, the Gulf country’s GDP would increase at market rates at a rate of 3.9%. This places Oman’s growth rates for 2023, after the UAE, in second place.
The Middle East and North Africa’s GDP is anticipated to rise by 3.5% in 2023 before falling to 2.7% in 2024.
According to the World Bank report, the GCC region could maintain an inflation rate below the average for the world in 2023.
Among the GCC economies, Saudi Arabia, the biggest crude exporter, is predicted to see the steepest drop, with growth estimated to reach 2.9% in 2023, down from 8.7% in 2022.
The second-largest economy in the GCC, the UAE, is expected to increase by 3.3% in 2023 as opposed to the 4.1% predicted in October.
The World Bank forecasts that the GCC will still outperform the larger Middle East and North Africa (MENA) region, which will grow by 3% in 2023, down from 5.8% growth in 2022.
The analysis was created before the unexpected oil output cuts announced by OPEC+. Thus the forecasts do not take that decision’s effects into account.
A Year Of Prosperity
The commercial and industrial sectors will see the launch of 48 projects in 2023, according to an announcement from the Ministry of Commerce, Industry and Investment Promotion (MoCIIP).
The news was made at the organization’s annual media briefing, which also reviewed 2022’s accomplishments and the current year’s ambitions.
The ministry reported that, through December 2022, Oman and the rest of the world exchanged more than RO40 billion in goods, a growth of 41%, while total exports exceeded RO25 billion.
At current prices, the contribution of domestic trade to the GDP from the majority of economic activity, including the services sector, has increased by 9.7%.
Conclusion
Oman’s economy is set to experience significant growth in the coming years, the fastest in the Gulf Cooperation Council. While the GCC’s overall economic growth is expected to slow down due to a fall in oil demand, Oman’s GDP continues to expand, with the oil and service-related sectors contributing significantly to this growth.
The government has also announced the launch of 48 projects in 2023, indicating a prosperous year ahead for Oman.