Economic Indicators of Oman

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Topic: analysis of economic indicators of oman

INTRODUCTION
Oman, officially called the Sultanate of Oman is an Arab state in southwest Asia on the southeast coast of the Arabian Peninsula. It is bordered by the United Arab Emirates (UAE) to the northwest, Saudi Arabia to the west and Yemen to the southwest. The coast is formed by the Arabian Sea 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 but its parliament has some legislative and oversight powers. In November 2010, the United Nations Development Programme (UNDP) listed Oman, from among 135 countries worldwide, as the nation most-improved during the preceding 40 years. According to international indices, it is one of the most developed and stable countries in the Arab. Oman is a middle-income economy that is heavily dependent on dwindling oil resources. Because of declining reserves and a rapidly growing labor force, Muscat, the capital of Oman has actively pursued a development plan that focuses on diversification, industrialization, and privatization, with the objective of reducing the oil sector's contribution to GDP to 9% by 2020 and creating more jobs to employ the rising numbers of Omanis entering the workforce. Tourism and gas-based industries are key components of the government's diversification strategy. By using enhanced oil recovery techniques, Oman succeeded in increasing oil production, giving the country more time to diversify, and the increase in global oil prices 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| --| --| --| --| --| --| --| --| --| --| --| --| --| 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| --| GDP growth annual (%)| --| --| 2.6| 0.3| 3.4| 4.0| 5.5| 6.8| 12.8| 1.1| 4.0| 5.5| --| GDP real 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 (billion US $)| --| --| 3.173| 3.593| 3.597| 4.358| 5.014| 9.523| 11.582| 12.203| 13.025| 14.366| --| Tax/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| --| --| --| External Debt (billion US $)| 4.8| 4.5| 5.3| 5.7| 5.97| 4.81| 4.36| 4.26| 5.3| 6.88| 7.06| 8.83| 9.05| Saving/GDP (%)| --| --| 40.2| 39.4| 38.1| 50.5| 49.0| 47.2| 51.0| --| --| --| --| Real Interest Rate(%)| --| --| 10.8| 1.0| -2.9| -11.1| -4.8| 0.6| -16.4| 40.4| -10.0| -9.7| | Exchange rate ($)| 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 labor 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 shy of 1 million. There are no up-to-date unemployment figures available for Oman. Unemployment was estimated at 15% in 2004, but it has been dropping as the ‘Omanization’ program continues to roll out, and is forecasted to drop below 10% within the next five years. The policy of Omanisation aims to replace expatriate workers with locals.

2. Inflation: as measured by the consumer price index reflects the annual percentage change in the cost to the average consumer of acquiring a basket of goods and services that may be fixed or changed at specified intervals, such as yearly. Despite high liquidity, inflation remained low in the range of -1% to 1.9% during 2001 to 2005, but flared up to an annual rate of (12.6%) in 2008 compared to a (5.9%) in 2007 due to high import prices for goods priced in Euro, Japanese Yen...
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