'Economic Indicators of Oman\r'

'Topic: analysis of economic indicators of oman INTRODUCTION Oman, officially called the  grand Turkate of Oman is an Arab  deposit in southwest Asia on the southeastward edge of the Arabian Peninsula. It is bordered by the United Arab Emi tempos (UAE) to the northwest, Saudi Arabia to the west and Yemen to the southwest. The coast is formed by the Arabian ocean on the southeast and the Gulf of Oman on the northeast.Oman is an absolute monarchy in which the Sultan of Oman, named Sultan Saeed bin Qaboos, exercises ultimate authority only if its parliament has some legislative and management powers. In November 2010, the United Nations Development political curriculum (UNDP) listed Oman, from among 135 countries domainwide, as the nation most-improved during the front 40 years. According to international indices, it is unrivalled of the most developed and stable countries in the Arab. Oman is a middle- income thriftiness that is heavily strung-out on dwindling crude fossil rock oil re ancestors.Because of declining militia and a rapidly growing ride force, Muscat, the capital of Oman has actively pursued a development plan that focuses on diversification, industrialization, and privatization, with the accusatory of reducing the oil sectors contribution to gross domesticated product to 9% by 2020 and creating more jobs to engross the raise numbers of Omanis entering the workforce. touristry and gas-based industries are key percentages of the political relations diversification st tempogy.By using enhanced oil retrieval techniques, Oman succeeded in increasing oil production, giving the arena more time to diversify, and the increase in worldwide oil prices through 2011 provided the political sympathies greater pecuniary resources to invest in non-oil sectors. | 2000| 2001| 2002| 2003| 2004| 2005| 2006| 2007| 2008| 2009| 2010| 2011| 2012| Unemployment| â€| †| â€| â€| â€| â€| â€| â€| â€| â€| â€| â€| â€| Inflation| †1. 2| -0. 8| -0. 3| 0. 2| 0. 8| 1. 9| 3. 2| 6. 0| 12. 1| 3. 9| 3. 2| 4. 1| â€| gross domestic product harvest-festival one-year (%)| â€| â€| 2. 6| 0. 3| 3. 4| 4. | 5. 5| 6. 8| 12. 8| 1. 1| 4. 0| 5. 5| â€| gross domestic product au thereforetic proceeds (%)| 4. 6| 7. 4| 2. 2| 1. 1| 1. 2| 5. 6| 6. 6| 5. 6| 6. 4| 2| 4. 2| 5. 5| â€| Reserves ( meg US $)| â€| â€| 3. 173| 3. 593| 3. 597| 4. 358| 5. 014| 9. 523| 11. 582| 12. 203| 13. 025| 14. 366| â€| measure/gross domestic product (%)| â€| â€| â€| â€| â€| 19. 50| 20. 30| 21. 60| 21. 60| 21. 60| 21. 60| 22. 0| â€| plenty/gross domestic product (%)| â€| â€| 77. 4| 82. 9| 90. 6| 89. 9| 88. 8| 96. 9| 96. 2| 94. 1| â€| â€| â€| orthogonal Debt ( meg US $)| 4. 8| 4. 5| 5. 3| 5. 7| 5. 97| 4. 81| 4. 36| 4. 26| 5. 3| 6. 88| 7. 06| 8. 83| 9. 5| miserliness/GDP (%)| â€| â€| 40. 2| 39. 4 | 38. 1| 50. 5| 49. 0| 47. 2| 51. 0| â€| â€| â€| â€| hearty Interest Rate(%)| â€| â€| 10. 8| 1. 0| -2. 9| -11. 1| -4. 8| 0. 6| -16. 4| 40. 4| -10. 0| -9. 7| | Ex modification arrange ($)| 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 Analysis of the Economic Indicators of Oman 1. Unemployment: percent of the motor force that is without jobs Oman has a population of 2. 981 million, which is rising at around 3. 4% a year. Its labor force is just incertain of 1 million.There are no with-it unemployment figures available for Oman. Unemployment was estimated at 15% in 2004, but it has been dropping as the ‘Omanization’ program poke outs to roll out, and is forecasted to drop be downhearted 10% within the next five years. The form _or_ system of government of Omanisation aims to replace expatriate workers with locals. 2. Inflation: as measured by the consumer price world power r eflects the one-year percentage change in the cost to the average consumer of acquiring a basket of goods and services that may be fixed or changed at subalterntake intervals, much(prenominal) as every year.Despite high liquidity, s easilying remained low in the range of -1% to 1. 9% during 2001 to 2005, but flared up to an annual regularise of (12. 6%) in 2008 compared to a (5. 9%) in 2007 due to high entailment prices for goods priced in Euro, Japanese Yen and British Pound sterling, and the dispraise of the US long horse against the world major currencies. Oman’s financial policy focuses on controlling rising prices, which has remained broadly speaking modest, partially reflecting the openness of the economy. The government controls the prices of some goods and services through subsidies.Moreover, the government does not resort to monetization of its budget deficits, so there is little inflationary cart from this source. CPI inflation came down to a manag eable rate of 3. 5% in 2009 due to wise monetary and financial policies of the government. Omani Riyal is pegged to the US vaulting horse sign and as the USA is an important source of imports for Oman, it protects prices from some of the pressures of imported inflation from the USA. The yearly rates of consumer price inflation are pass judgment at (3. 9%) and (2. 9%) in 2010 and 2011, singly. 3.Gross domestic product: GDP is the sum of gross value added by all resident producers in the economy plus any product taxes and damaging any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of infixed resources. A surge in oil prices since 2003 has resulted in a strong issue of Oman’s economy, which has grown almost twain and a half times in size during 2002 to 2008. Nominal GDP grew strongly at the rate of 44% to US$60 billion in 2008 compared to US$41. billi on in 2007. Nominal GDP shrank by (-10. 9%) to $53. 4 billion in 2009 due to the global financial and economic crisis and the slump in the world oil market. However, nominal GDP is plausibly to cover 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 back of the expected global economic recovery and increase world oil beseech. 4. Total reservesReserves reconcile holdings of monetary gold, special drawing rights, reserves of IMF members held by the IMF, and holdings of contrasted modify under the control of monetary authorities. The gold component of these reserves is valued at year- cobblers last (December 31) London prices. Data are in incumbent U. S. dollars. Since 1973 the Omani Riyal (RO) has been pegged to the US dollar. After 10. 2% devaluation in J anuary 1986, it has remained at the level of RO: US$2. 60, which is likely to continue in the medium-term. A relatively low inflation and increasingly tight pecuniary policy have helped the government exercise 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 $11. 5 billion by the end of 2010 and 2011, respectively. 5. Tax/GDP Tax receipts refers to compulsory transfers to the central government for public purposes. Certain compulsory transfers such as fines, penalties, and most social surety contributions are excluded. Refunds and corrections of erroneously equanimous tax revenue are tough as negative revenue.Tax as a percentage of GDP is quite low throughout the years because resources are in abundance to generate wealth, hence revenue from tax is low. 6. muckle/GDP Trade is the sum of exports and import s of goods and services measured as a share of gross domestic product. A high portion of gross domestic product is being utilized in interchange. OMAN’S main ITEM OF EXPORTS: petroleum, fish, metals, textiles OMAN’S MAIN ITEM OF IMPORTS: machinery and transport equipment, manufactured goods, food, livestock, lubri back endts 7. External Debt This entry gives the total public and mysterious debt owed to nonresidents repayable in outside(prenominal) money, goods, or services.These figures are calculated on an exchange rate basis, i. e. , not in purchasing power parity (PPP) terms. Higher oil prices resulted in huge trade and current account surpluses during 2005 to 2008. A surplus on current account stood at US$ 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 i s expected to realize high 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. coach 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 allow for be a strong positive impact on current account balances. 8. manner of speaking/gdp: shows the ratio of savings and gdp. 9. Real evoke rate Interest rate is the cost of borrowing and real interest rate is interest after deducting inflation as measured by the GDP deflator.In 2009, due to the world oil crisis Oman’s economy shrank and therefore its external debt change magnitude as a result there was increase in the cost of borrowing. wherefore the real interest rate rose up to 40% in 2009, withal keeping in mind a deject 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 authorise exchange market. It is calculated as an annual average based on periodical averages (local currency units relative to the U. S. dollar).From 1973 to 1986, the rial was pegged to U. S. dollar at 1 rial = 2. 895 dollars. In 1986, the rate was changed to 1 rial = 2. 6008 dollars, which translates to close to 1 dollar = 0. 384497 rial. The Central vernacular buys U. S. dollars at 0. 384 rial, and deal U. S. dollars at 0. 385 rial. instanter it is the third highest. Oman has a strong currency which may have the following disadvantages presumptuous all factors remaining constant: 1. The lower price of imports leads to consumers increasing their demand and this can cause a large trade deficit.Exporters lose price competitiveness because they will find it more expensive to sell in foreign markets and face losing market share †this can damag e profit and employment in some sectors and industries. 2. If exports fall, this causes a reduction in aggregate demand and reduces the short-term rate economic growth as measured by the % change in real GDP. 3. Because investment is partly dependent on the strength of demand, if exports fall, then so will business assertion and capital investment. SOURCES: 1. http://www. gulfbase. com 2. http://www. indexmundi. com 3. http://www. worldbank. org/\r\n'