| Annual Report 2020 | | https://cbo.gov.om/report/AnnualReport/150 | 12/29/2021 8:00:00 PM | Annual Report 2020 | The Annual Report analyses global and domestic economic developments during the year 2020. | | | https://publishing.bnet.om/sites/assets/Documents/English/Publications/AnnualReports/AnnualReport2020.pdf | <p style="text-align:justify;"><span class="ms-rteThemeFontFace-1 ms-rteFontSize-2">The Annual Report analyses global and domestic economic developments during the year 2020. The analysis of domestic developments covers the Sultanate's real sector, external sector, financial sector and public finance. As widely known, the year 2020 was marked by an unprecedented global health crisis caused by the covid-19 pandemic forcing people to stay home. While the vaccine has raised hope of returning to normalcy, the virus mutation continues to be the cause of concern.</span></p><p style="text-align:justify;"><span class="ms-rteThemeFontFace-1 ms-rteFontSize-2">Crucial for recovery in the post-pandemic period, the financial sector remained resilient during 2020. The money supply increased by 8.9 percent during the year on the back of credit growth of 3.3 percent and deposit growth of 2.1 percent. The banking sector remained well-capitalized with capital adequacy ratio of 18.9 percent at the end of 2020. The liquidity ratios of banks were also well-above the prescribed norms.</span></p><p><span class="ms-rteThemeFontFace-1 ms-rteFontSize-2">The recent surge in infections in some countries and the virus mutation continue to cloud the global economic outlook. While the Omani economy is also facing these uncertainties, the implementation of the vaccination program has strengthened the conditions for a rebound in economic activities in 2021 and 2022. Going forward, continued focus on fiscal consolidation and a further improvement in the business environment will encourage more investment and support economic activities. With that in mind, the CBO would continue to play its due role in supporting growth and stability in the Sultanate during the upcoming phase.</span></p> |
| Annual Report 2019 | | https://cbo.gov.om/report/AnnualReport/119 | 12/5/2020 8:00:00 PM | Annual Report 2019 | The Central Bank of Oman (CBO) released its Annual Report for the year 2019 indicating that total assets of the banking sector increased by 3.7 percent and amounted to RO 35.2 billion at the end of 2019 | | | https://publishing.bnet.om/sites/assets/Documents/English/Publications/AnnualReports/AnnualReport2019English.pdf | <p style="text-align:justify;"><span class="ms-rteThemeFontFace-1 ms-rteFontSize-2">The Central Bank of Oman (CBO) released its Annual Report for the year 2019 indicating that total assets of the banking sector increased by 3.7 percent and amounted to RO 35.2 billion at the end of 2019, the total credit provided by the banking sector inched up by 3.1 percent to RO 25.8 billion, whereas aggregate deposits increased by 1.7 percent to RO 23.7 billion in 2019. The said Annual Report for the year 2019 gives an in-depth analysis of the Sultanate's economic conditions during 2019. </span></p><p style="text-align:justify;"><span class="ms-rteThemeFontFace-1 ms-rteFontSize-2">The Annual Report stated that Omani economy witnessed a broad-based contraction during 2019 on the back of lower oil prices and increased uncertainty due to a slowdown in global economic activities. Nominal gross domestic product (GDP) during 2019 contracted by 4.3 percent as compared to growth in nominal terms of 12.3 percent in 2018. The nominal contraction was mainly attributed to a significant decline in the hydrocarbon sector which remains a significant contributor to the economy. At the same time, the non-hydrocarbon sector also contracted by 1.5 percent in 2019 due to changes across various activities, reflecting an environment of uncertainty and fiscal consolidation. </span></p><p style="text-align:justify;"><span class="ms-rteThemeFontFace-1 ms-rteFontSize-2">Despite the contraction in some economic activities, a strong and resilient banking system continued to support financial stability. During 2019, CBO`s gross foreign assets registered a decline of 4.2 percent, while various monetary and banking indicators registered moderate growth. The total assets of the banking sector increased by 3.7 percent and amounted to RO 35.2 billion at the end of 2019. Total credit provided by the banking sector inched up by 3.1 percent to RO 25.8 billion, whereas aggregate deposits increased by 1.7 percent to RO 23.7 billion in 2019. </span></p><p style="text-align:justify;"><span class="ms-rteThemeFontFace-1 ms-rteFontSize-2">The fiscal and external accounts recorded moderate improvement during 2019, largely reflecting the fiscal consolidation strategy pursued by the government. Notwithstanding a moderate improvement, the fiscal deficit remained elevated due to lower oil prices and expenditure rationalization constrained by socio-economic priorities. The overall fiscal balance improved marginally with the deficit falling to RO 2,623 million in 2019 from RO 2,650 million in 2018. The fiscal deficit as a percentage of GDP, however, inched up marginally to 9.0 percent in 2019 from 8.7 percent in 2018. Whereas, the external sector recorded an improvement for the third year in a row, mainly driven by a decline in imports and workers' remittances. The improved trade surplus in conjunction with a decline in net outflows under services and drop in workers' remittances led to narrowing the current account deficit by 4.7 percent to RO 1,592 million during 2019 from RO 1,672 million in 2018. </span></p><p style="text-align:justify;"><span class="ms-rteThemeFontFace-1 ms-rteFontSize-2">The year 2020 is considered to be an unusual year for Oman as it has been affected by the implications of COVID-19 pandemic parallel to the decrease in oil prices. Though the global oil prices have since recovered from their low levels on the back of a pick-up in economic activity across several major economies and supply management strategy (OPEC+ agreement), they continue to remain lower than the comfortable threshold for Oman. The global economic outlook for 2020 continues to remain dim as a result of the COVID-19 pandemic which has significantly affected economic, social and health activities. The second wave of the COVID-19 infections that hit Europe recently has further contributed to the uncertainty about global economic recovery. According to the latest projections by IMF, the global economy will contract by 4.9 percent in 2020 before start recovering in 2021. As the global economy will take time to return to normalcy, oil prices are expected to remain at a relatively low levels, affecting hydrocarbon sector activities in the Sultanate. Social distancing measures put in place to curb the spread of the COVID-19 virus will also weigh on the economic recovery process.</span></p> |