Ammon News - AMMONNEWS - The Jordanian economy is in good shape, especially considering the political instability in neighboring countries, according to the International Monetary Fund.

Following a visit to the country in September, an IMF mission reported that Jordan’s GDP was on track to grow by 3.3% this year, accelerating from 2.8% last year. Agriculture and mining were recovering, which has boosted output, the IMF said in a statement.

Other basic economic metrics look healthier, too. The IMF thinks inflation will be less than 3% this year, below last year’s 3.3% rate. Jordan’s current account deficit, meanwhile, is expected to narrow to below 7.5% of GDP this year.

“The focus continues to be on reducing public deficits and debt, while boosting growth and creating jobs so as to improve living standards and social conditions for Jordanians in the future,” said Kristina Kostial, an IMF official who led the Jordanian mission.

While the future looks potentially promising, the political situation in the Middle East isn’t stable. Jordan is coping with an influx of refugees fleeing Syria’s three-year-old civil war, as well as the threat of instability from the recent incursion of Islamic State fighters in Iraq and Syria. Supplies of natural gas from Egypt have also been affected by the political and economic situation there, leading to losses for Jordanian electricity producers.

Against that backdrop, Ms. Kostial said the IMF had “constructive discussions” with Jordan about policies to sustain growth while coping with external challenges. The IMF praised a draft income-tax law now under discussion in the country’s parliament, saying it would raise government revenues and spread the burden of economic adjustments more equitably.

*Wall Street Journal