MUSCAT: Oman’s economy grew 3.7 percent in real terms in 2009, well above the expectations of the country’s government and analysts, while inflation slowed sharply, an Economy Ministry source said on Tuesday.
The global financial crisis slashed growth rates across the world’s largest oil exporting region last year.
“The GDP growth of 3.7 percent in 2009 was due to higher oil prices than predicted in the 2009 budget,” the source said.
Economy Minister Ahmad Mekki said in December that he expected the economy to grow by a sluggish 1-2 percent in 2009 after it was hit by lower oil prices in the second quarter.
Analysts polled by Reuters forecast 3.0 percent for 2009 and 4.3 percent this year, after growth of 7.6 percent in 2008.
The sultanate’s GDP is forecast to expand by 6.1 percent in real terms in 2010 due higher revenues following recovery in oil prices, Mekki said earlier this month.
Inflation decelerated to 3.6 percent in 2009, from a record peak of 12.4 percent in 2008, the source also said.
“This is due to a drop in global market prices that led to reduced demand for commodities,” the source said.
The oil producer’s consumer price growth was expected to stand at 3.0 percent on average in 2009 and 5.0 percent this year, the Reuters poll showed. Mekki saw inflation at 3.5 percent this year.
