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Ammon News - European Bank for Reconstruction and Development said that the economic recovery in Jordan “still moderate but strong”, annually the growth reached to 2.5% in the first half of this year, with broad support in the service sector and industry, as well as a strong recovery in tourism.
“However, inflation continued to rise, reaching 5.3% in July 2022, driven by higher food prices, outperforming a 30.6% increase in energy prices following the introduction of electricity tariff reforms ” and the gross domestic product is expected to stabilize to 2.0% in 2022 where the repercussions of the war on Ukraine affect trade flows and tourism, the bank added in the report released on Wednesday.

The report indicated that "faster growth in the non-service sector and a stronger recovery in global tourism and trade flows could drive growth in 2023 to 2.7%," explaining that achieving growth potential "will depend in the medium term in the country on the successful implementation of the announced reforms." Within the framework of the government's "economic modernization plan" to attract foreign direct investment and foster new growth engines.

Growth is likely to continue to benefit from ongoing IMF-supported reforms, as the main risks to the outlook include erosion of real competitiveness from an overvalued exchange rate, regional instability, and a slower-than-expected recovery in partner economies.