AMMAN —AlGhad— Due to the continuation of challenging external circumstances, i.e. the situation in Iraq and Syria, growth is expected to pick up modestly in 2017, from 2016’s 2.0 per cent, driven by rebound in exports, tourism, and remittances, said the International Monetary Fund (IMF)’s mission to Jordan Wednesday, March 15th .
According to the summary of the IMF’s mission, which concluded yesterday, Jordan’s overall fiscal deficit is expected to decline to under 3 per cent of GDP by end of 2017, from 2016’s 3.6 per cent, in light of the fiscal measures underpinning the 2017 Budget.
On the other hand, inflation has “accelerated to 2.5 per cent (year-on- year (y/y) in January and to 4.6 per cent (y/y) in February,” the IMF report underscored, “reflecting higher global food prices and the one-off impact of the fiscal measures.”
However, the “recent steps by the Central Bank of Jordan (CBJ) in raising key monetary policy rates has helped to preserve the attractiveness of the Jordanian dinar and keeping international reserves at adequate levels.”
In terms of debt, credit to the private sector accelerated further, according to the IMF report, increasing by around 10 per cent in 2016
Moreover, recovery in remittances and tourism, is expected to reduce the current account deficit in 2017, which has increased, most likely, to 9.5 per cent of GDP in 2016, compared to 9.1 per cent the year before.
