MUSCAT -- Oman's economic performance was robust in 2013, a delegation from the International Monetary Fund (IMF) said in a statement after wrapping up a two-day mission to the Sultanate.
The IMF mission, comprising Ananthakrishnan Prasad and Mariana Colacelli, visited Oman to hold a two-day workshop with staff of the Central Bank of Oman (CBO) during May 7-8, 2014, on Oman's medium-term macroeconomic framework. This workshop was designed to build medium-term projections for Oman's economy.
"Real non-hydrocarbon sector is estimated to have grown by 5.5 per cent in 2013 and is projected to remain so in 2014. Fiscal and external sectors are estimated to have posted surpluses in 2013 at over 5½ per cent and around 10 per cent of GDP, respectively. Fiscal and external surpluses are expected as well in 2014, though of lower magnitude. The public investment program is expected to help maintain non-hydrocarbon growth around 5.0 per cent over the medium term," the statement said.
Commenting on the banking sector, the delegation added: "The banking system remains profitable and stable, with an average return on assets of 1.6 per cent, return of equity of 11 per cent, capital adequacy ratio of 16.2 per cent, and gross nonperforming loans of 2.1 per cent as of December 2013."
This collaborative workshop is a step to support the authorities' upcoming reform agenda that includes strengthening Oman's public finances through a targeted reduction in energy subsidies and introducing a medium-term budget framework to help anchor fiscal policy and support macroeconomic stability.
© Oman Daily Observer 2014
