Selected Issues Papers

Lifting productivity in Oman: The Role of Structural Reforms

Author/Editor:

Muayad Ismail ; Haytem Troug

Publication Date:

June 13, 2024

Electronic Access:

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Summary:

Oman’s potential nonhydrocarbon real GDP growth has trended downward since the global financial crisis, with a negative contribution from total factor productivity. This paper estimates productivity gains associated with structural reforms and identifies key binding constraints and reform priorities to boost productivity in Oman. Our results show that reforms to reduce the state’s footprint and strengthen institutions, as well as product market reforms, should be prioritized and packaged together to magnify productivity gains from labor market and financial sector reforms. These findings could inform the planning and implementation of the ongoing structural reform agenda envisaged under Oman Vision 2040.

Series:

Selected Issues Paper No. 2024/020

Subject:

International organization Monetary policy

Frequency:

Regular