Oman: Steady Stream of Consciousness
Across the Gulf, diversification has become a mantra. Resource depletion means that for Oman that is the ongoing rationale at the forefront of the policymaking imagination. Meanwhile, the recent pickup by oil and gas also lifts the spirit.
Put simply, Oman has dealt with the impact of the regional and global slowdown relatively well.
Roubini Global Economics (RGE) expects the economy to grow by about 4 per cent this year, in line with the Mena and GCC average, before expanding 4.5 per cent in 2011. Strong government spending is the main driver.
Oman is taking advantage of higher-than-budgeted oil prices to maintain an expansionary fiscal policy in both 2010 and 2011. Government consumption will be less supportive in 2011 and beyond, though, assuming that the oil price and demand rise only gradually.
Editor’s Note: An updated version of our Oman and other GCC countries will be available to RGE clients as part of our 2011 outlook.
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