São Paulo – The International Monetary Fund (IMF) has released this Wednesday (18th) the results of a mission to Jordan that lasted from February 24th to March 10th. Upon being approved by the IMF Executive Board, the mission’s report will allow a US$ 200 million disbursement to the Arab country.
According to mission chief Kristina Kostial, the loan is made possible “In view of the Jordanian authorities’ commitment to economic reforms and efforts to preserve macroeconomic stability amid external challenges.” She made the statement following the sixth review of a Stand-By Arrangement entered into by Jordan and the IMF in August 2012, providing for a total US$ 2 billion loan.
Kostial said in a press release that Jordan’s economy grew by 3.1% last year, supported by construction, mining and agriculture, despite a rather complex regional scenario, with ongoing conflicts in Syria and Iraq, and the ensuing need to shelter refugees from neighboring countries.
She also mentioned the low inflation rate and the fact that the current account deficit dropped from 17.1% of Gross Domestic Product (GDP) in 2013 to 12.1% in 2014. The fiscal deficit, on the other hand, has exceeded the target as a result of revenue shortfalls.
The IMF mission chief also said that this year, Jordan will likely benefit from the cheap oil, which should help bring the current account deficit down to 10.6% of GDP, and growth may pick up to 4%.
Public debt, “which remains very high,” is also expected to decline from 2016 onwards. International reserves are expected to stay at “comfortable levels.”
*Translated by Gabriel Pomerancblum