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Oman economy to grow by 5 per cent in 2015

The central bank says the nation’s economy is still capable of addressing the fall in oil prices in international markets

Oman’s economy is projected to grow by 5 per cent in 2015, the country’s central bank says in a report.

Despite falling crude oil prices, the Arab Gulf nation’s economy managed to address this situation in the first quarter of the 2015 fiscal year, the report published by Times of Oman reveals.

The bank says the nation’s economy is still capable of addressing the fall in oil prices in international markets.

It says the sultanate enjoys good monetary reserves with local banks, in addition to government bonds, which can be used to address the budget deficit.

Furthermore, the bank notes that non-performing loans have declined to around 2 per cent and that, according to the report, is a good rate compared with international rates.

In the first quarter of 2015, the government remained committed to spending on investment, which was set at OMR3.214 billion, the report says.

Furthermore, spending on social benefits such as pension, health insurance and education remains unaffected in the first quarter of the current year, while work is underway on strategic projects as planned.

The country’s economic growth is forecast to reach 5.5 per cent at fixed prices, the bank indicates.