São Paulo – The Jordanian economy is recovering, inflation is on the way down and energy spending is decreasing. So says a report on the country released this Wednesday (7th) by the International Monetary Fund (IMF). According to the document, Jordan still faces with two major challenges: a high unemployment rate, at 12.6%, and conflict in neighbouring Syria.
“Fiscal consolidation started in mid-2012, reducing the combined primary central government deficit and the electricity company’s losses from 14.5% of GDP in 2011 to 8.3% of GDP in 2014,” the report reads.
According to the IMF, the Jordanian GDP was up approximately 3% in 2013, should be up 3.5% in 2014 and 4.5% in the medium term. The inflation rate was 3.3% in 2013, is expected to drop to 2.5% by the end of this year, and then level out at 2% in the medium term.
The Fund notes that the unemployment rate must be reduced and warns of eventual crises in gas supply from Egypt, noting that the Syrian crisis is a threat to Jordan’s economic development. “Risks to this outlook remain substantial, mostly related to the Syria conflict and further fluctuations in gas from Egypt,” according to the report.
*Translated by Gabriel Pomerancblum
