Fitch Solutions predicts that Kingdom’s inflation rate will decline by 2.7%

Fitch Solutions
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AMMAN — Fitch Solutions expects a moderate acceleration of the Kingdom’s economic growth to 2.6 percent in 2023. اضافة اعلان

The company stated the Kingdom’s economic growth should remain above the ten-year pre-COVID average, Al-Mamlaka TV reported.

In its report, research highlighted the country’s gross domestic product (GDP) is expected to grow moderately, from 2.5 percent in 2022 to 2.6 percent in 2023, remaining slightly higher than the pre-pandemic ten-year average of 2.4 percent.

In the same report, it highlighted that the increase of Jordan’s economic growth would be driven by a collective performance in all components of the GDP.

Moreover, it predicted that the increase in real GDP growth would most likely be driven by an annual increase in investment, which would raise its contribution to the Kingdom’s real GDP growth from 0.5 percent in 2022 to 0.6 percent in 2023.

Contributions form Jordan’s private sector
Meanwhile, the report expects that the contribution of private consumption to the country’s economic growth will increase this year for two main reasons.

The first reason is an increase in consumer confidence due to a significant decrease in inflation due to the decline in global commodity prices from 4.4 percent in 2022 to 2.7 percent in 2023.

Secondly, the company believes that the decrease in unemployment will support household spending, following the notable increase in unemployment during the pandemic, which will decrease from 22.9 percent in 2022 to 21.7 percent in 2023.

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