Oman’s economy contracted 1.9pc in H1 of 2019: central bank

Oman’s economy contracted by 1.9 per cent in nominal terms in the first half of the year as the non-oil sector shrank, the central bank said yesterday. The Gulf state’s finances have been hurt by a slump in oil prices in recent years, but the economic decline this year emanated “from the non-petroleum industrial activities and services sector”, the central bank said.

It said the non-hydrocarbon sector of the economy contracted 3.4pc in nominal terms in January-June. The hydrocarbon sector grew 2.1pc in the same period, with nominal gross domestic product (GDP) from crude oil and natural gas increasing by 1.5pc and 5.6pc, respectively, it said.

Despite its access to financial markets — it sold a $3 billion bond in July — Oman’s fiscal position remains weak and its debt is rated “junk” by rating agencies. The central bank told Reuters in September it expected real gross domestic product growth of 1.1pc this year, down from an estimated 2.2pc last year.