Oman: fiscal policy set to provide less support to growth

The rapid rise in Omani government spending in recent years has caused the budget surplus to narrow sharply and, if we’re right in expecting oil prices to fall over the coming years, the budget position could even swing into deficit. The country’s substantial financial savings and low debt level mean that there will be little immediate pressure to tighten fiscal policy. But the government probably won’t be able to raise spending at the same pace as in recent years.