Business | Economy
Oman records nearly 13% growth
Oman's gross domestic product (GDP) grew by an impressive 12.9 per cent in 2007 unfazed by the US subprime crisis and the global economic slowdown, the Central Bank of Oman (CBO) announced on Wednesday.
- Staff Report
- Published: 13:10 July 17, 2008
Muscat: Oman's gross domestic product (GDP) grew by an impressive 12.9 per cent in 2007 unfazed by the US subprime crisis and the global economic slowdown, the Central Bank of Oman (CBO) announced on Wednesday.
For the fourth consecutive year, the Sultanate experienced robust economic growth characterised by strong employment generation, although inflation was a worrisome factor, the apex bank said. Most notably, the 12.9 per cent GDP growth in 2007 was driven by significant acceleration in non-oil activities. Non-petroleum activities witnessed 18.3 per cent growth in 2007, and the share of non-petroleum GDP in total GDP was as high as 56 per cent.
"The strong macroeconomic performance of Oman in 2007 was evident in robust economic growth, large creation of additional employment opportunities, significant progress on economic diversification, sustained surpluses in the fiscal and balance of payments positions, low and declining levels of public debt, comfortable levels of foreign exchange reserves, and a sound and resilient banking system," the CBO stated in its annual report for 2007.
Inflation remained a key macro-economic policy concern in 2007, the apex bank noted. Inflation as measured by the annual percentage change in the average Consumer Price Index (CPI) for the Sultanate, exhibited a rising trend, from 0.7 per cent in 2004 to 1.9 per cent in 2005, 3.4 per cent in 2006, 5.9 per cent in 2007 and 10.5 per cent in the first quarter of 2008.
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