Economic Indicators of Oman

Topic analysis of economic indicators of oman INTRODUCTION Oman,officially called theSultanateof Omanis anArab suppose in southwest Asia on the southeast coast of theArabian Peninsula. It is adjoin by theUnited Arab Emi tempos (UAE) to the northwest,Saudi Arabiato the west andYemento the southwest. The coast is formed by theArabian Seaon the southeast and theGulf of Omanon the northeast.Oman is an irresponsible monarchy in which theSultan of Oman, named Sultan Saeed bin Qaboos,exercises ultimate authority tho itsparliamenthas some legislative and oversight powers. In November2010, theUnited Nations reading Programme(UNDP) listed Oman, from among 135 countries populacewide, as the nation most-improved during the preceding 40years. accord to international indices, it is one of the most developed and stable countries in theArab. Oman is a middle-income miserliness that is heavily dependent on dwindling crude petroleum colour resources.Be reasonableness of declining reserves and a rapidly growing labor force, Muscat, the capital of Oman has actively prosecute a development plan that focuses on diversification, industrialization, and privatization, with the objective of reducing the rock oil spheres contribution to gross domestic product to 9% by 2020 and creating more jobs to employ the go numbers of Omanis entering the workforce. Tourism and gas-based industries are key components of the brasss diversification st browsegy.By utilize enhanced oil recovery techniques, Oman succeeded in increasing oil production, full-grown the country more time to diversify, and the increase in planetary oil costs through 2011 provided the government greater financial resources to invest in non-oil sectors. 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Unemployment pompousness 1. 2 -0. 8 -0. 3 0. 2 0. 8 1. 9 3. 2 6. 0 12. 1 3. 9 3. 2 4. 1 gross domestic product offset annual (%) 2. 6 0. 3 3. 4 4. 5. 5 6. 8 12. 8 1. 1 4. 0 5. 5 GDP square growth (%) 4. 6 7. 4 2. 2 1. 1 1. 2 5. 6 6. 6 5. 6 6. 4 2 4. 2 5. 5 Reserves ( gazillion US $) 3. 173 3. 593 3. 597 4. 358 5. 014 9. 523 11. 582 12. 203 13. 025 14. 366 receipts enhancement/GDP (%) 19. 50 20. 30 21. 60 21. 60 21. 60 21. 60 22. 0 Trade/GDP (%) 77. 4 82. 9 90. 6 89. 9 88. 8 96. 9 96. 2 94. 1 out-of-door Debt (billion US $) 4. 8 4. 5 5. 3 5. 7 5. 97 4. 81 4. 36 4. 26 5. 3 6. 88 7. 06 8. 83 9. 5 Saving/GDP (%) 40. 2 39. 4 38. 1 50. 5 49. 0 47. 2 51. 0 authentic Interest Rate(%) 10. 8 1. 0 -2. 9 -11. 1 -4. 8 0. 6 -16. 4 40. 4 -10. 0 -9. 7 Ex transplant measure ($) 0. 38 0. 38 0. 38 0. 38 0. 38 0. 38 0. 38 0. 38 0. 38 0. 38 0. 38 0. 38 0. 38 ECONOMIC INDICATORS OF OMAN epitome of the Economic Indicators of Oman 1. Unemployment percent of the labor force that is without jobs Oman has a population of 2. 981 million, which is rebellion at around 3. 4% a year. Its labor force is sightly shy of 1 million.There are no up-to-date u nemployment figures available for Oman. Unemployment was estimated at 15% in 2004, but it has been dropping as the Omanization program continues to crimper out, and is forecasted to drop below 10% within the next five years. The polity of Omanisation aims to replace expatriate workers with locals. 2. Inflation as calculated by the consumer price index reflects the annual percentage change in the cost to the fairish consumer of acquiring a basket of goods and services that may be indomitable or changed at specified intervals, much(prenominal) as yearly.Despite spicy liquidity, ostentatiousness remained low in the range of -1% to 1. 9% during 2001 to 2005, but flared up to an annual deem of (12. 6%) in 2008 compared to a (5. 9%) in 2007 referable to high import prices for goods priced in Euro, Japanese Yen and British worst sterling, and the depreciation of the US Dollar against the world major currencies. Omans financial policy focuses on controlling flash, which has rem ained generally modest, partly reflecting the openness of the economy. The government controls the prices of many goods and services through subsidies.Moreover, the government does not resort to monetisation of its budget deficits, so there is little inflationary pressure from this source. consumer price index inflation came down to a manageable rate of 3. 5% in 2009 due to wise monetary and fiscal policies of the government. Omani Riyal is pegged to the US Dollar and as the USA is an important source of imports for Oman, it protects prices from some of the pressures of merchandise inflation from the USA. The yearly rates of consumer price inflation are anticipate at (3. 9%) and (2. 9%) in 2010 and 2011, respectively. 3.Gross domestic product GDP is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fictional assets or for depletion and degradation of natural resources. A surge in oil prices since 2003 has resulted in a pie-eyed growth of Omans economy, which has grown intimately two and a half times in size during 2002 to 2008. titulary GDP grew trueheartedly at the rate of 44% to US$60 billion in 2008 compared to US$41. billion in 2007. Nominal GDP shrank by (-10. 9%) to $53. 4 billion in 2009 due to the world-wide financial and economic crisis and the slump in the world oil market. However, nominal phrase GDP is likely to expand by 16. 6% and 8. 9% to US$62. 3 billion and $67. 8 billion in 2010 and 2011, respectively. In real terms, the economy grew at the rate of 3. 4% in 2009 compared to 6. 2% in 2008. The economy is expected to pick up and expand at the rate of 4. 7% each in 2010 and 2011 on the bandaging of the expected global economic recovery and increased world oil demand. 4. Total reservesReserves lie in holdings of monetary gold, special drawing rights, reserves of IMF members held by the IMF, and holdings of exotic flip under the control of monetary authorities. The gold component of these reserves is valued at year-end (December 31) London prices. Data are in contemporary U. S. dollars. Since 1973 the Omani Riyal (RO) has been pegged to the US dollar. After 10. 2% devaluation in January 1986, it has remained at the level of RO US$2. 60, which is likely to continue in the medium-term. A tellingly low inflation and increasingly tight fiscal policy stool helped the government maintain this peg.Total reserves excluding gold stood at US$11. 5 billion at the end of 2008 compared to US$9. 5 billion at the end of 2007. Foreign reserves stood at US$ 11 billion in 2009, which are expected at $11. 1 billion and $11. 5 billion by the end of 2010 and 2011, respectively. 5. Tax/GDP Tax revenue refers to compulsory transfers to the central government for public purposes. Certain compulsory transfers such as fines, penalties, and most social security co ntributions are excluded. Refunds and corrections of mistakenly collected tax revenue are treated as interdict revenue.Tax as a percentage of GDP is quite low end-to-end the years because resources are in abundance to generate wealth, hence revenue from tax is low. 6. Trade/GDP Trade is the sum of exports and imports of goods and services measured as a share of gross domestic product. A high portion of gross domestic product is being utilized in trade. OMANS primary(prenominal) ITEM OF EXPORTS petroleum, fish, metals, textiles OMANS MAIN ITEM OF IMPORTS machinery and transport equipment, manufactured goods, food, livestock, lubricants 7. External Debt This entry gives the total public and private debt owed to nonresidents repayable in unusual currency, goods, or services.These figures are calculated on an win over rate basis, i. e. , not in purchasing power parity (PPP) terms. Higher oil prices resulted in huge trade and current account surpluses during 2005 to 2008. A surplus on current account stood at US$ 5. 47 billion (9. 1% of GDP) in 2008 compared to US$2. 59 billion (6. 2% of GDP) in 2007. The economy realized a marginal surplus of $0. 14 billion (0. 3% of GDP) in 2009 due to the global crisis and the slump in the world oil market. However, the economy is expected to realize higher surpluses of $1. 48 billion (2. 4% of GDP) and $2. 4 billion (3. 2% of GDP) in 2010 and 2011, respectively on the back of likely recovery in the global oil market. Bearing in mind the considerable remittances by foreign workers, profit remittances by the foreign partners of Petroleum Development Oman (PDO), as well as those of private sector foreign companies in Oman, there leave be a strong positive impact on current account balances. 8. Saving/gdp shows the ratio of savings and gdp. 9. Real interest rate Interest rate is the cost of borrowing and real interest rate is interest afterwards deducting inflation as measured by the GDP deflator.In 2009, due to the world oi l crisis Omans economy shrank and therefore its external debt increased as a result there was increase in the cost of borrowing. then the real interest rate rose up to 40% in 2009, also keeping in mind a lower inflation rate of 3. 9%. 10. Exchange rate Exchange rate refers to the exchange rate determined by national authorities or to the rate determined in the legally sanctioned exchange market. It is calculated as an annual average based on monthly averages (local currency units relative to the U. S. dollar).From 1973 to 1986, the rial was pegged toU. S. dollarat 1 rial = 2. 895 dollars. In 1986, the rate was changed to 1 rial = 2. 6008 dollars,which translates to approximately 1 dollar = 0. 384497 rial. The Central strand buys U. S. dollars at 0. 384 rial, and sell U. S. dollars at 0. 385 rial. Now it is the third highest. Oman has a strong currency which may have the following disadvantages assuming all factors remain constant 1. The lower price of imports leads to consumers i ncreasing their demand and this can cause a large trade deficit.Exporters loseprice competitivenessbecause they will find it more expensive to sell in foreign markets and saying losing market share this can damage profits and employment in some sectors and industries. 2. If exports fall, this causes a reduction in aggregate demand and reduces the short rate economic growth as measured by the % change in real GDP. 3. Because investment is partly dependent on the potence of demand, if exports fall, then so will business confidence and capital investment. SOURCES 1. http//www. gulfbase. com 2. http//www. indexmundi. com 3. http//www. worldbank. org/