(MENAFN- Muscat Daily) The Ministry of Finance in its statement for state general budget 2015 said Oman economy is projected to grow by five per cent in 2015 with growth in non-oil activities is expected to reach 5.5 per cent.
The statement said that the growth of non-oil activities will mainly be concentrated on the construction electricity water trade activities and services of public administration defence and transfer industries.
It said that the projections indicate that real growth of national economy increased to 4.4 per cent in 2014 compared to around four per cent in the previous year. 'The national economy is expected to continue to grow at acceptable rates driven by the growth of non-oil activities in addition to a strong effective domestic demand and high oil production rates.'
The Ministry of Finance statement said that the conditions of Oman's banking sector remained solid adding 'In line with global interest rate trends projections in the coming period interest rates are expected to fall in Oman at a greater level which will contribute to supporting the bank credit growth and stimulate investment activity.'
The national economy is projected to continue to maintain its external balances but the size of current surpluses is expected to retreat as a result of the noticeable rise in domestic demand and the falling oil prices the statement said. The current account surplus is projected to drop to 2.9 per cent in 2014 compared to about 8.2 per cent in 2013.
Actual public revenues for fiscal year 2014 are expected to amount around RO13.9bn compared to estimated revenues of RO11.7bn in 2014 budget an increase of 19 per cent. The increase is due to the rise in the actual realised price of oil than the budget's assumed price and the rise in most actual items of non-oil revenues the Ministry's statement said.
The actual public spending in fiscal year 2014 is expected to reach around RO14.5bn seven per cent higher than the approved budget estimates of 2014 as additional allocations were approved during the year to cover emerging needs.
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