Fitch Ratings: Oman to Fall Behind its Fiscal Consolidation Goals in New Medium-Term Fiscal Plan
December 03, 2020
Email Fitch Ratings (Fitch) expects asset drawdowns and increased external support to be vital for Oman’s continued smooth funding as it predicts Oman’s economy to fall behind the fiscal consolidation targets set out in the Government of Oman’s new medium-term fiscal plan (MTFP).
According to Fitch, Oman’s fiscal deficit is expected to double to 18% of the gross domestic product (GDP) in this fiscal year reducing to 7% in 2024, which is lower than the MTPF expectation of a 2% deficit in 2024. Fitch suggests that the difference is mainly due to relatively optimistic economic assumptions in the MTPF, which predicts Oman to achieve a GDP of OMR 32 billion in 2024, 10% higher than the estimate by Fitch.
