Oman seeks IMF help

摘要

Oman has requested technical assistance from the International Monetary Fund in order to devise a medium-term debt strategy and enhance its fiscal framework. The move, which was announced in early July 2021, comes as the Gulf country faces significant economic headwinds from lower oil prices and the Covid-19 pandemic. Oman has among the weakest public finances in the Gulf Co-operation Council, in part due to its lower oil reserves and the more expensive extraction methods that are needed to access them, relative to regional peers. The country's gross domestic product (GDP) fell by 2.8% in 2020, while its fiscal deficit skyrocketed to 19.3%. Since oil prices tanked in 2014, the country's debt-to-GDP ratio has increased from 15% to 80%, according to research from Reuters. Oman's efforts to reform its economy have lagged behind those of other oil producers. Improvements to the business operating environment, as well as reforms to the tax regime, have been suggested as ways to address some of its economic woes.