ammonnews.net

Ammon News - AMMONNEWS - The International Monetary Fund (IMF) said Jordan has achieved substantial success in dealing with adverse shocks over the past several years, as the economy has remained resilient and enjoys some strong fundamentals, noting that the exchange rate peg has been an important anchor to the economy, reserves are at comfortable levels and the financial system is sound and well capitalized.

In statement issued after the first review under Jordan’s economic program supported by an Extended Fund Facility (EFF) arrangement, the IMF added that significant progress has been made in reducing the fiscal deficit and interest rates have declined to low levels, helping to revive credit and support growth.

These conditions owe much to the authorities’ sustained policy and reform efforts, the statement noted.

The statement pointed out to several challenges that continue to press the economy, including regional conditions and the refugee crisis from Syria, continue to take a toll on public finances, investment, and the external current account.

The IMF said Jordanian authorities’ program is rightly focused on tackling these challenges, through a gradual and steady fiscal consolidation, led by reforms to the tax exemptions framework and income tax, is critical to stabilize and reduce public debt and to help public finances be on a structurally sounder foundation. This stronger foundation would help better buffer against future shocks.