S\u00e3o Paulo \u2013 Jordan has made important progress in maintaining economic stability in recent years, and its priorities for the coming years are to maintain this stability, reduce fiscal imbalances, boost growth, create jobs, and strengthen social protection. The view was published by an International Monetary Fund (IMF) mission that visited the country\u2019s capital city, Amman, from November 11 to 20 led by Chris Jarvis, who holds the position as head of IMF mission in Egypt.<\/p>\n
IMF supports an ongoing economic program in the country that is set to end in a few months, so the government began discussions on a new three-year program to tackle the goals that need to be attained to improve the Jordanian economy. In late January, an IMF mission is expected to return to Jordan to continue discussions.<\/p>\n
According to Jarvis, during the visit the Jordanian government emphasized its commitment and determination to continue the reform process and to overcome current obstacles to growth. The country\u2019s inflation is low, the balance of payments has improved, and international reserves have recently rebounded, the financial system remains stable and the authorities have taken important steps to improve the business climate.<\/p>\n
But according to the IMF staff, challenges remain. Real Gross Domestic Growth (GDP) growth has averaged only 2-2.5% since 2010, and unemployment remains particularly high for youth and women. Fiscal consolidation has been slower than envisaged, with yields from efforts to broaden the tax base and mobilize revenues to support Jordan\u2019s fiscal and development needs having fallen short of expectations.<\/p>\n
Weaker revenues have in turn led the authorities to cut back on public investment, and public debt remains high. \u201cGoing forward, it will be important to continue efforts to reduce vulnerabilities, increase economic resilience, and support stronger growth,\u201d Jarvis wrote. The IMF staff recommends a combination of deep structural reforms, steady and gradual fiscal consolidation that credibly places public debt on a downward path over the medium term, while also improving social protection measures.<\/p>\n
Translated by Guilherme Miranda<\/strong><\/p>\n