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.<\/p>\n
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.”<\/p>\n
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.<\/p>\n
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. <\/p>\n
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.<\/p>\n
“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.<\/p>\n
The Fund’s mission has concluded that in 2014, the focus will remain on reducing public debt, while creating jobs and improving living standards. <\/p>\n
*Translated by Gabriel Pomerancblum<\/strong><\/p>\n