Jordan passed COVID-19 economic woes, GDP growth envisaged at 2.4%

(File photo: Ameer Khalifeh/Jordan News)
AMMAN — The fourth review of the performance of the Jordanian economy with the International Monetary Fund (IMF), has been completed successfully, Finance Minister Mohamad Al-Ississ said, according to Al-Mamlaka TV.اضافة اعلان

Meanwhile, the IMF said it envisaged GDP growth at 2.4 percent this year.

Ississ told a press conference Monday that the fiscal policy has maintained financial stability, and the program implemented under IMF supervision is moving at a steady pace and in the right direction.

“Jordan has an economic reform program without any external impositions,” he told reporters.

Central Bank Governor Adel Al-Sharkas explained that the fourth review comes at an important and sensitive juncture.

IMF said that the financial reform system in Jordan is proceeding correctly, adding that Jordan has “passed the economic challenges related to the pandemic”.

The fund explained that the measures undertaken by Jordan reduced the repercussions of economic crisis under COVID-19. It reaffirmed the adequacy of foreign reserves and the banking system resistance to crises.

IMF added that “the long-term contracts to import gas, which Jordan has concluded, have eased the brunt of rising energy prices”.

In a related development, IMF said it envisaged real GDP growth in Jordan at 2.4 percent this year and that the upward trend will continue to exceed 3 percent in the medium term, Al-Mamlaka TV said in another report.

But the fund added that unemployment rates remain significantly high, especially among the youth.

In the near term, IMF said Jordan’s fiscal and monetary policies must continue to support recovery and maintain economic stability in a challenging environment, characterized by increasingly narrow and tight global financial conditions and rising commodity prices.

Jordan’s actions have mitigated the impact of the coronavirus pandemic on the economy, which is currently in a state of recovery, aided by the reopening of economic sectors, and supported by targeted fiscal and monetary measures, IMF said.

The IMF considered that the deficit will “narrow” from 8.8 percent of GDP in 2021 to 6.5 percent of GDP in 2022, taking into account the impact of higher fuel prices and oil derivatives. But it added that the gap was partly filled by a recovery in tourism revenues and exports, which exceeded expectations.

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