Fitch affirms Jordan’s rating at 'BB-', projecting negative outlook

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AMMAN — Fitch Ratings has affirmed Jordan's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-' with a negative outlook.

Jordan’s ratings are constrained by high government debt, weak growth, risks stemming from domestic and regional politics and large external financing needs, according to the credit rating agency.اضافة اعلان

“The negative outlook reflects the risk that government debt deteriorates further amid an uncertain recovery and a difficult social context following the coronavirus pandemic,” the report said.

Fitch estimated that Jordan's general government deficit widened to 5.4 percent of GDP in 2020, from 1.4 percent in 2019, driven by a 40 percent collapse in non-tax revenue, even as tax revenue registered a 6 percent increase on the back of government efforts to improve tax collection.

Spending growth was contained at 4 percent, reflecting a modest pandemic-support package and offsetting measures towards spending control, including a freeze on civil-service hiring and bonuses, which has since been extended into 2021, Fitch said.

Meanwhile, the budgetary central government deficit was 7.0 percent of GDP in 2020, from 3.3 percent in 2019.

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