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Ammon News - Fitch Ratings said that many geopolitical risks in the Middle East will affect Jordan's economic growth in 2024.

In a report, Fitch expected that real GDP growth in Jordan would reach 2.2% in 2024, down from 2.6% in 2023 and below the pre-pandemic average over ten years, which amounted to 2.4%.

Data from the Department of Statistics (Dos) indicate that economic growth slowed to 2.0% year-on-year in the first quarter of 2024, from 2.3% in the fourth quarter of 2023.

While Jordanian exports have shown resilience in the face of the repercussions of the attacks in the Red Sea, the Israeli war on the Gaza Strip, which has been going on for about 10 months, will continue to affect the arrival of tourists and investment in the Kingdom, the report indicated.

The report also showed that the war on the Gaza Strip has greatly affected tourism in Jordan and the effectiveness of the sector's recovery after the repercussions of the Corona pandemic, which will severely affect service exports during the remainder of this year.

The report indicates that next year, 2025, GDP growth is expected to rise slightly to 2.5%.

Stable inflation, along with monetary easing by the Central Bank of Jordan, will work to enhance real incomes, support credit absorption, and stimulate consumer spending, the report explained.