(MENAFN) Oman's very high economic dependence on gas sector is going to add pressure to the public finance in 2015-16, although it has an ongoing solid economic development.
Meanwhile, the country's fiscal deficit is forecasted to expand at around 12 percent of GDP from this year onwards, as hydrocarbon-related government income drops by more than 40 percent this year.
Additionally, driven by the pressure on the oil and gas sector, GDP improvement will slow to around 3 percent over 2015-16, a decline from the 4.9 percent average amid 2005-14.
However, Oman's high domestic savings and healthy banking sector will continue to bring stable funding for the government, therefore liquidity risk is unlikely to notably affect government debt sustainability.
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