AMMAN — Fitch Solutions, a subsidiary of
Fitch Ratings, said Jordan’s inflation reached the highest rate since 2018, but
asserted that the economy is on the mend,
Al-Mamlaka TV reported.
اضافة اعلان
Fitch Solutions, one of America’s top three credit
rating agencies based in New York, lowered its previous expectations for
Jordan’s GDP in 2022 from 2.7 percent to 2.5 percent. It said the figure
reflected the rising cost of living amid a continued hike in commodity prices
globally.
It reiterated its view that Jordan’s economy will
improve, in comparison with 2021, when the whole year’s growth stood at 2.2
percent.
On Jordan’s inflation, based on the Consumer Price
Index, data indicated that inflation rose from 3.6 percent on an annual basis
in April 2022 to 4.4 percent on an annual basis in May.
It is the fastest growing rate since November 2018,
driven by high food, transport, utilities, and housing components in Jordan’s
consumer prices index, Fitch solutions said.
On the other hand, Jordan’s economy grew by 2.5
percent in the first quarter of 2022 on an annual basis, supported by strong
consumption rates as well as a fixed gross capital consumption.
The reason for the downward revision of Jordanian
GDP growth is mainly due to the risks often related to higher global food and
energy prices, which may weaken consumer confidence and household consumption
in 2022.
The credit-rating agency reiterated its expectations
that the main contribution to Jordan’s 2022 GDP will be from the increased
household consumption. It also said that data points to improved economic
activity this year, partly from a projected rise in tourism and fertilizer
revenues.
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