São Paulo – Jordan (pictured)’s main economic sectors recorded growth in the first three quarters of this year, which could lead the country to a 2.6% growth in 2023, according to projections by the International Monetary Fund (IMF). This Thursday (9), the institution announced it reached an agreement to loan USD 1.2 billion to the Hashemite Kingdom and made public its most recent assessment of the Jordanian economy.
According to the IMF, inflation has slowed down and will remain at 1% this year, controlled by high interest rates, and the current account deficit is expected to improve to 7%. According to the IMF, Jordan has “strong” international reserves.
“Structural reforms will be accelerated, with the aim of creating a more dynamic private sector that can create more jobs and achieve a meaningful reduction in unemployment, especially among women and youth,” stated the fund, in addition to highlighting the need to improve the business environment, making it easier to start and operate a business and reforming the labor market. The IMF predicted that the country could be affected by the conflict in the Middle East and warned interest rates would remain high for an extended period.
At the end of the financial institution’s staff visit to the country, which began on October 30 and ended this Thursday, the fund and Jordan reached a staff-level agreement on a USD 1.2 billion loan through the IMF’s Extended Fund Facility (EFF) program, designed especially to help countries with payment balance issues caused by “structural weakness” or slow growth. In return, the country that receives the funding needs to carry out structural reforms in its economy. The agreement is still subject to approval by the fund’s executive board and management.
Translated by Elúsio Brasileiro