Oman's economy has grown by 2 percent in real terms so far this year and if oil prices remain above $60 a barrel, the non-Opec oil producer's projected budget deficit will narrow, its economy minister said on Saturday. Ahmad bin Abdul-Nabi Mekki also said he was concerned that the weak US dollar, if it persists, would increase inflation, which has dropped by more than 50 percent this year.
He predicted inflation in May would be lower than the April figure. "Economic growth so far this year has grown by 2 percent (compared to the same period last year)," he told Reuters in an interview after a meeting of Gulf Co-operation Council (GCC) finance ministers.
"The weakness of the dollar will fuel inflation since Oman is largely importing from abroad. However, I'm happy to say the inflation fell to 4.9 percent in April from 12 percent in December. This is excellent." Inflationary pressures have dropped off quickly across the oil-exporting region as oil prices fell from peaks of $147 a barrel in July and the dollar strengthened from lows it hit in 2008, easing import costs for states like Oman that peg their currencies to the dollar.
Comments
Comments are closed.