Oman is projected to become the fastest growing economy within the the oil exporters of the six-member Gulf Cooperation Council (GCC) in 2023 with growth seen at 4.3%, according to a report from World Bank.
Rating agency S&P last week revised Oman’s outlook to positive, from stable. It said the government was repairing its balance sheet and had reduced gross debt to 40% of GDP in 2022, from around 60% in 2021.
Overall, the World Bank expects a sharp slowdown in GCC economic growth due to an expected decline in oil prices from highs in 2022. The GCC is expected to post a fiscal surplus of 3.2% of GDP in 2023, down from 4.3% in 2022.
For instance, Saudi Arabia, the world’s top crude exporter is expected to grow by 2.9% in 2023, the sharpest slowdown among the GCC economies, from 8.7% in 2022, and 3.7% projected in October.
“Economic growth will slow down in 2023 on a narrative that the windfall from rising oil prices will come to an end,” Roberta Gatti, the World Bank’s chief economist for the MENA region told Reuters in an interview.
The report was compiled before surprise oil output cuts announced on Sunday by OPEC+, which have driven up oil prices and price expectations, and the World Bank said its projections do not incorporate any impact from that decision.
