São Paulo – Trade, tourism and investor confidence in Jordan are suffering with the regional turmoil, with ongoing conflicts in neighboring countries Iraq and Syria. This is one of the conclusions of a report by an International Monetary Fund (IMF) team led by Kristina Kostial and released Wednesday (18th) evening. The team was in the Arab country from November 13th to 17th. <\/p>\n
The Jordanian economy is projected to grow 2.5% this year and 3% in the next. “Jordan’s economy remains resilient in a difficult regional environment,” Kostial said in an IMF statement. The fact that fuel prices are plummeting due to the low price of oil is beneficial to some sectors of the Jordanian economy. Inflation should drop 0.7% in 2015 and climb only 2% in 2016 as fuel prices stabilize. <\/p>\n
But the country’s weak exports and tourism industry performance caused the current account deficit to reach 0.5% of Gross Domestic Product (GDP) in the first half of the year, with an expected 11.5% of GDP by the end of 2015. The ratio is higher than last year, but should stay at the same level in 2016, according to the IMF.<\/p>\n
Kostial notes that the country’s international reserves are at an adequate level, with credit to the private sector continuing to improve and banking sector indicators are sound. The IMF team discussed how the country’s government can find the balance to raise growth and employment rates while reducing public debt and the current account deficit. <\/p>\n
The IMF advised that long-standing obstacles be addressed in the business environment, including access to financing and labor market reforms. It also pointed out the need to create a level playing field for enterprises and for a gradual clearance of enterprises’ arrears. <\/p>\n
“At the same time, it is critical that the international community continues to support Jordan through grants, including helping the country bear the costs of hosting of Syrian refugees, ” said Kristina Kostial.<\/p>\n
*Translated by Gabriel Pomerancblum<\/strong><\/p>\n