Oman's economy to grow by 3.5% in 2026: IMF estimates

17/04/2026 09:05 AST

The latest reports from the International Monetary Fund (IMF) on global economic outlook for April 2026 indicate persistent challenges facing the global economy, contrasted with positive indicators reflecting the resilience of the Omani economy and its capacity to achieve sustainable growth.

The IMF has revised its global growth forecast downward to 3.1 percent in 2026, compared to 3.4 percent in 2025, with a modest improvement to 3.2 percent anticipated in 2027. This outlook unfolds amid escalating geopolitical tensions, ongoing trade disputes, and pressures associated with high global debt levels and fiscal deficits.

The report projects an increase in global inflation to 4.4 percent in 2026, up from 4.1 percent in 2025, before easing to 3.7 percent in 2027, driven by energy price pressures and persistent supply chain challenges.

In contrast, IMF estimates indicate that the Omani economy will register growth of 3.5 percent in 2026, despite a downward revision of 0.5 percentage points from previous forecasts due to global market volatility. This growth is supported by stability in non-oil activities and the continued implementation of fiscal reforms.

The IMF also expects inflation rates in the Sultanate of Oman to reach approximately 1.7 percent during 2026, reflecting price stability and the effectiveness of prevailing economic policies.

The data further reveal improvements in financial indicators, with public debt projected to decline to around 33 percent of GDP, while a current account surplus of 7.5 percent is anticipated, driven by robust exports and foreign liquidity inflows.

These indicators underscore the continued ability of the Omani economy to adapt to global fluctuations, supported by a package of economic and fiscal reforms, thereby enhancing growth sustainability and maintaining economic stability over the medium term.

Times of Oman