Oman: Inflation stabilises in February, sees budget deficit of $1.7b in 2024

Dubai: Inflation stabilised in Oman during February, propping up the economy to a stronger footing for the rest of the year.

The inflation rate in February, recorded at 105.3, eased from 1.8 per cent last year, stated by the National Center of Statistics and Information (NCSI).

Oman witnessed a 1.1 per cent hike in the price index of the food and non-alcoholic beverages group in February compared to the same month of the previous year. Conversely, the price index of the fish and seafood group declined 9.9 percent from the same period in 2023.

Oman expected a budget deficit of $1.66 billion (Dh6 billion) in 2024, around 1.5 per cent of the country’s gross domestic product, down from a surplus in 2023 as lower oil production and prices weigh on public finances, according to Reuters.

The budget is based on the average oil price per barrel, which is at $60 (Dh220.)

Oil revenues are expected to hit $15.3 billion (Dh56 billion) in 2024 lower than the $17.9 billion (Dh65.7 billion) estimated in 2023.