Economy thrives, witnessing a 2.8% growth

Central Bank of Jordan CBJ
(File photo: Jordan News)
AMMAN – Dr. Adel Sharkas, Governor of the Central Bank of Jordan (CBJ), announced on Saturday that signs point to the end of the quantitative tightening cycle.اضافة اعلان

During the Jordanian Banking Summit 2024, Dr. Sharkas predicted a 25 basis point decrease in global interest rates beginning in the second quarter of this year, Al-Mamlaka TV reported.

He acknowledged that the local economic file made significant progress in 2023, despite the precarious global environment and state of uncertainty that the world is experiencing.

He stated that Jordan's commitment to economic reform, together with a stable financial and monetary environment, gave international institutions confidence in the country. This includes credit rating agencies, who agreed on Jordan's stable credit outlook in 2023.

Dr. Sharkas stated that the national economy grew by 2.8 percent in the second quarter of 2023, with an average growth rate of 2.7 percent in the first three quarters of 2023.

He stated that the CBJ's effective monetary policy, as well as its credibility in maintaining harmony between local and regional interest rates, contributed to increased confidence in the national economy, monetary stability, and the strengthening of the dinar. This confidence translated into a continuous decline in the dollarization rate, which is expected to reach 18 percent by the end of November 2023, compared to rates that exceeded 20 percent prior to the COVID-19 pandemic, as well as maintaining record levels of foreign reserves at the CBJ exceeding 18 billion, enough to cover 9 months of the kingdom's imports of goods and services. This is in addition to helping to keep the Kingdom's inflation rate, which reached 2.1 percent in 2023, within reasonable limits for economic activity and in a way that encourages saving and investment.

Dr. Sharkas confirmed that 2023 demonstrated the strength and durability of Jordan's banking industry, particularly its high levels of capital, which are among the highest rates in the MENA region. It reached 17.4 percent at the end of the first half of 2023, in addition to the banking sector's comfortable levels of legal liquidity, which reached approximately 135.4 percent, indicating that despite the challenges that the national economy faced, non-performing debts decreased to 5.0 percent at the end of the first half of 2023, which is a relatively low rate and within manageable levels.

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