EBRD forecasts 2.5% economic growth for Jordan over next two years

(File photo: Jordan News)
AMMAN — The European Bank for Reconstruction and Development (EBRD) has projected a positive outlook for Jordan's economy, with a forecasted domestic gross national product growth rate of 2.5 percent for the current year and the following year. اضافة اعلان

This assessment takes into account the ongoing effects of global monetary policy tightening, as reported by Ad-Dustour daily.

According to the recently released EBRD economic prospects report on Tuesday, Jordan experienced a growth rate of 2.5 percent last year, primarily fueled by a thriving tourism sector.

However, during the same period the mining industry experienced a slowdown.

InflationThe report also highlights that inflation in Jordan increased from 1.3 percent in 2021 to 4.2 percent last year.

This rise was primarily driven by escalating food and energy prices worldwide, amendments to the electricity tariff introduced in the Kingdom in April 2022, and the impact of interest rate hikes following decisions made by the US Federal Reserve.

The successful implementation of Jordan's Economic Modernization Vision, launched by the government in June 2022 to attract foreign direct investment, will be crucial for achieving medium-term growth, according to the EBRD.

Structural reforms
Looking ahead to 2024, the European Bank expects the momentum for structural reforms, along with favorable monetary policies and recovering trade flows, to support a 2.5 percent growth rate.

However, the bank emphasizes several risks that could potentially threaten the economic outlook, including declining competitiveness due to currency appreciation, potential disruptions in global trade markets, regional instability, and delays in implementing structural reforms.

Since commencing operations in Jordan in 2012, the EBRD has invested over 2 billion euros in financing 71 projects. This includes 180 million euros in financing and 130 million euros in grants from the European Bank under the Municipal Resilience and Response Framework Bank for refugee-related initiatives.

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