A vision is what takes any economy further, with increased diversification a new land of opportunities is now opening up in Oman. The structural transformation of Oman implies that the country is now looking forward to reduce its reliance on hydrocarbon sector, and invest more diversely throughout all the sectors, according to Central bank of Oman Annual report of 2017.
The prices of international oil have also improved significantly as a result of amplified global demand. Likewise, the country’s GDP has increased by 8.7 percent in 2017, as compared to 3.0 in the previous year. The recovery pattern presents a fairly broad idea about how the economy moving forward in the right direction, with both hydrocarbon as well as non-hydrocarbon contributing significantly. While, the hydrocarbon activities grew by 20.8 percent, the latter’s growth was marked at 3.9 percent.
The non-oil external demand was also a plus for the economy and contributed to its growth factors. The demand also meant that the ideation of diversification is moving in the right direction. The escalation in prices of oil has helped Oman significantly in gaining some good ground it lost during the disparity in economy. However, the agriculture and fishing sector witnessed a bumpy growth of 7.0 percent in 2017, while it grew by 11.7 percent in the previous year.
The highlighted public policy has also driven the diversification in the economy. Therefore, an upward trajectory can be seen in the nation’s private sector, which grew by 4.6 percent in nominal terms in 2017 and accounts for 51.6 percent share in the overall GDP.
The challenge despite growth for the economy has been creation of new employment opportunities. Though the private sector has shown encouraging signs by providing 7.0 percent more employment, yet the overall employment in private sectors braked a low by 1.2 percent, falling from an average of 8.5 percent in previous two years.
The country’s inflation was under control and a positive, which helped economy grow positively. The average inflation based on consumer price index edged up to 1.6 from 1.1 in 2016, which was mainly because of the hardening of international price of commodities. Despite a little hike in the prices, the economy is flourishing on a positive note, paving way for a modernized Oman.
