conventional view of historical Muscat the day after Oman's Sultan Qaboos bin noted changed into laid to rest in Muscat, Oman, January 12, 2020. REUTERS/Christopher Pike
DUBAI, Sept 12 (Reuters) - Oman's fiscal deficit and debt are anticipated to decline sharply after spiking ultimate year, the overseas monetary Fund mentioned on Sunday, as the Gulf state implements a medium-term plan to fix funds hit with the aid of the COVID-19 pandemic and low oil expenses.
The fiscal deficit is decided to lower to 2.4% of gross h ome product this 12 months from 19.3% of gross home product (GDP) in 2020, and the country is expected to swap to a surplus in 2022, the IMF pointed out.
"principal government debt rose to eighty one.2 % of GDP (in 2020), with financing needs covered through home and exterior borrowing and asset drawdown, but is anticipated to decline sharply over the medium time period," the IMF referred to in a press release.
total executive debt is anticipated to lower to 70.7% of GDP this yr and to say no additional unless about 47% of GDP in 2026, according to IMF estimates.
for the reason that the oil fee crash in 2014, Oman has amassed large quantities of debt, outpacing a force to diversify income far from oil and cut back spending on its bloated public sector.
but the Sultanate has embarked on a raft of measures in the past yr to repair its finances, together with the introduction of a value-brought tax and the choice to work with the IMF to improve a debt method.
The ordinary economic climate shrank by way of 2.8% last 12 months but is expected to rebound to a 2.5% growth this yr as a vaccine rollout helps domestic pastime and external demand picks up, the IMF stated.
($1 = 0.3850 Omani rials)
Reporting via Davide Barbuscia and Lisa Barrington; editing with the aid of Catherine Evans and Pravin Char
Our requisites: The Thomson Reuters have confidence ideas.
0 Comments