Jordan will receive $130 million as part of an IMF financial deal
Jordan will get $130 million in financial help from the International Monetary Fund (IMF) as part of a $1.2 billion aid package, according to a statement from the IMF.
IMF loan package
The IMF’s four-year financial assistance program, approved in January 2024, is progressing as planned, according to a recent statement. So far this year, $453 million has been disbursed.
The IMF’s review found that despite challenges like ongoing conflicts in the Middle East and uncertain global conditions, Jordan’s economy has remained stable and strong. Inflation has been decreasing, and the economy is still growing.
This economic stability is due to the strong policies adopted by Jordan’s government and their ongoing efforts to improve the economy. Additionally, Jordan has received significant financial support from international organizations.
Overall, Jordan’s economic performance under the IMF program is strong, showing the government’s commitment to following the right policies. The IMF also noted that all targets for the second review have been met, and progress is being made toward the program’s overall goals.
Important Quote
“To create a strong private sector, encourage job growth, and achieve Jordan’s Economic Modernization Vision, it’s important to keep making changes that improve the business environment, encourage competition, and attract private investment,” said Kenji Okamura, acting chair and deputy managing director of the IMF.
“Support from donors is crucial to help Jordan manage the challenges of the outside world, take care of a large number of refugees, and reach its development goals, including addressing climate change.”
Economic Outlook
Jordan’s economic growth is expected to slow to 2.3% in 2024, down from 2.7% last year. This is due to the regional conflict and its impact on Jordan’s economy. However, higher exports are expected to offset the decrease in local demand, according to the IMF.
The IMF predicts economic growth will rise to 2.5% in 2025, assuming the conflict is resolved and economic reforms continue.
Despite this, Jordan’s economic future still faces risks. Slow growth has made it harder to reduce the high unemployment rate, which remains at 21%.
Inflation in Jordan is expected to stay low at around 2%, showing the Central Bank’s efforts to maintain economic stability and keep the currency stable.
Published: 13th December 2024
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