MUSCAT: The Omani economy has managed to address the decline in oil prices and is expected to grow five per cent this year, according to the Central Bank of Oman (CBO).

The central bank added that there are good market indicators, such as the decline in non-performing loans (NPLs) to almost two per cent.

Moreover, the banks are well-capitalised and government bonds are one way of addressing the budget deficit.

During the first quarter of 2015, spending on social schemes was not affected and the government committed to an investment expenditure of RO3.21bn.

At fixed prices, GDP growth is seen at 5.5 per cent in 2015.

The banking sector also remains sound and monetary deposits at the end of 2014 stood at RO17.3bn, up 14 per cent from 2013, the CBO said.

The inflation rate, however, increased by 0.68 per cent at the end of March from the previous month, the central bank said.

SOURCE: Muscat Daily