COVID-19 IN OMAN

STUDENT NAME
ID
Economic impact of COVID-19
The impact of COVID-19 on the lowest income groups in society is a result of the economy's
decline, rising inflation, and lack of work possibilities. The first groups heavily impacted by the
tightened lockdown restrictions were daily gamblers and small business owners, including street
sellers and small manufacturers. The covid-19 problem has had a significant negative influence
on Sultanate growth in all areas. Oman was already making efforts to diversify its economy, but
the disruption of oil and gas caused by the pandemic has highlighted the necessity of doing so
even more. This will help Oman better withstand the effects of global crises and downturns in
the commodity cycle. To foster new economic engines and boost private sector growth,
legislative initiatives and goals have been presented. Due to travel and tourism disruptions,
business growth has slowed down globally, customer spending has reduced, and tourism and
travel have also been affected. There was a decline in both demand and consumption as a
consequence of the interruption to economic services and activity like transportation and
shopping. Global economic, social, and political difficulties are attributed to the COVID-19
pandemic's emergence. Due to the lockdown regulations put in place by various nations, there is
a decrease in the volume of transactions in logistics and international trade

In 2019, SMEs in Oman contributed 15% of the country's GDP. The Omani government
developed several interventionist initiatives, including the offering of subsidized loans and the
expansion of financial guarantees. The pandemic affects SMEs and forces some of them to cease
operations. In order to support SMEs and increase their contribution to employment and the
economy of the Sultanate of Oman, it is determined to be important to examine the impact of
COVID-19 and evaluate the policy actions. Global economic growth is negatively impacted by
the pandemic, which also causes a slowdown. Similar to the COVID-19 epidemic, Oman's
economy has been badly hampered since it first appeared. The first quarter of 2020 is anticipated
to see a 3.9% fall in Oman's GDP. The 6% decline in non-oil activity and the 0.4% drop in
inflation both point to a decline in domestic demand. In particular, among young Omanis, the
pandemic has hurt employment. The government had a plan, but it was unable to lessen how the
pandemic affected the economy. The effects permeated the economy, robbed the private sector
of liquidity, demoralized the public sector, and lost jobs for locals. The government changed
government contracts, disbanded or combined many councils and ministries, revoked the
privileges of senior state officials, and retired 70% of its tenured workers. Such policies, that
severely limited government expenditure, had a harmful influence on the flow of capital to a
government-driven economy, that was then felt in the private sector. Numerous shutdowns and
the cancellation or suspension of government plans had an especially negative influence on
businesses especially small and medium-sized businesses.