## Oman: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Oman

_IMF Staff Country Reports, September 12, 2021_

## Source details

**Canonical URL:** [Oman: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Oman](https://www.imf.org/en/publications/cr/issues/2021/09/10/oman-2021-article-iv-consultation-press-release-staff-report-and-statement-by-the-executive-465431)

## Other formats

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## Bibliographic details
- Published: September 12, 2021
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513596020.002

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### Background and shocks
- Sultan Haitham ascended to the throne in January 2020 and committed to implementing strong fiscal and structural reforms to address longstanding vulnerabilities.
- Oman faced persistent fiscal deficits arising from incomplete adjustment to lower oil prices since 2015.
- In 2020 Oman experienced twin shocks: the COVID-19 pandemic and a collapse in oil prices, which amplified fiscal and external vulnerabilities.
- The authorities moved rapidly to contain the spread of COVID-19 infections and provided broad-based policy measures to limit its impact on the economy.

### Fiscal policy, Medium-Term Fiscal Plan (MTFP), and budget measures
- Frontloaded fiscal consolidation has been implemented in the 2021 budget as part of the authorities’ Medium-Term Fiscal Plan (MTFP).
- The MTFP aims to eliminate the fiscal deficit over the medium term.
- Persistent fiscal deficits prior to 2021 were linked to incomplete adjustment to lower oil prices since 2015.

### Monetary, financial sector, and risks
- Banks have high capital buffers and liquidity.
- Credit risk is a concern going forward.

### Structural reforms and diversification
- Structural reforms have been accelerated under Oman Vision 2040.
- Reform objectives include boosting non-oil private sector growth and facilitating job creation.

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_Source: https://www.imf.org/en/publications/cr/issues/2021/09/10/oman-2021-article-iv-consultation-press-release-staff-report-and-statement-by-the-executive-465431_