São Paulo – Jordan will see economic growth, a decrease in inflation rate, and a lower current account deficit by the end of 2013. As per a report released this Thursday (19th) by the International Monetary Fund (IMF), the country will manage to close the year on a path to recovery, notwithstanding the region’s unstable scenario, with the civil conflicts in Syria and the possibility of a suspension of gas supplies from Egypt.
According to the IMF document, Jordan should see a 3% increase in its Gross Domestic Product (GDP) by the end of the year. In 2012, the rate was 2.7%. The inflation rate, which stood at 6.5% last year, should be lower than 3% at the end of 2013, and the current account deficit is “decreasing substantially.”
To the IMF, one of the reasons for the improved performance of the Jordanian economy was a loan of approximately US$ 2 billion, granted by the Fund in August 2012. In exchange for the US$ 2 billion amount over a three-year period, the countries’ authorities have committed to carrying out economic reforms.
Under the stand-by agreement, IMF technicians pay visits to the country regularly in order to track economic indicators and make the funds available. The last visit took place from December 3rd to 18th.
The head of the mission to the country, Kristina Kostial, has said in a communiqué that Jordan is implementing a fiscal consolidation program, and that the accounts of the government and the power utility will meet the budget for the year.
“International reserves are now at a comfortable level and are expected to exceed their end-2013 target by a large margin. Moreover, fiscal and external imbalances have been reduced while social protection has been strengthened,” said Kostial.
The Fund’s mission has concluded that in 2014, the focus will remain on reducing public debt, while creating jobs and improving living standards.
*Translated by Gabriel Pomerancblum
