São Paulo – Jordan’s economic activity is expected to maintain the same growth rate recorded last year, 2.6%, this year and accelerate to 3% a year from 2025 to 2028. Inflation, in turn, is expected to close 2024 at 2.7%, fall to 2.4% in 2025, and maintain an annual rate of 2.5% from 2026 to 2028. The projections were unveiled in a statement released this Thursday (11) by the International Monetary Fund (IMF), which also confirmed that the institution’s board approved a new four-year arrangement transfer of USD 1.2 billion to the Arab country. Pictured above, a shopping street in the city of Salt.
In the statement, the IMF said “adept policies” and support from international partners helped Jordan overcome several economic shocks, maintain the stability of its macro economy and access to markets, and strengthen social support initiatives. The country has recently been a destination for millions of refugees from neighboring nations.
The IMF said some of the purposes of the new disbursement are to allow gradual fiscal consolidation, decrease public debt, improve the country’s energy system, and allow currency parity [to the US dollar] to be compatible with the country’s currency policies.
Arrangements
The IMF made USD 190 million available for immediate access, and the remainder will be phased over, subject to eight reviews of the agreement between the Fund and Jordan.
In the IMF’s statement, the entity’s deputy managing director, Kenji Okamura, said the country had made significant progress in implementing a reform agenda. “Building on progress made in recent years, the authorities will continue with a gradual fiscal consolidation – supported by measures to broaden the tax base and improve tax compliance and spending efficiency – to place public debt on a steady downward path while creating space for priority social and capital spending,” said Okamura.
Translated by Elúsio Brasileiro
