Ammon News - Economists affirmed that the International Monetary Fund's predictions for the national economy's growth in the current and upcoming year are a positive development showing international institutions' trust in Jordan's recovery and the national economy's adaptability and strength.
The Fund has increased its growth forecast for 2025 to 2.9 percent, as Jordan progresses with economic reforms and works towards economic modernization despite challenges from Israeli aggression in Gaza and southern Lebanon.
The International Monetary Fund predicted a 2.4 percent growth for the local economy by the end of this year, but it increased its forecasts for next year to a record growth of 2.9 percent.
The Fund predicted in its report "World Economic Outlook" that inflation in Jordan would be 2.1 percent this year, and expected it to increase to 2.4 percent.
Ex-Minister and Economic Specialist Dr. Jawad Al-Anani stated that the IMF's prediction for Jordan's economic growth in 2024, at 2.4 percent, is lower than the global average of 3.2 percent by one percentage point. Nonetheless, it signifies a rise in Jordan's per capita income, surpassing the population growth rate.
He stated the IMF forecasts a 2.9 percent growth for the Jordanian economy in 2025, representing a modest increase of 0.5 percent from the present year, which, while not substantial, will boost individual income growth.
He noted that the global forecast for 2025 anticipates a 4 percent growth rate, indicating that the Jordanian economy is lagging behind the global average due to unstable geopolitical conditions like wars and worldwide disarray, which are hindering growth rates.
Al-Anani emphasized that the International Monetary Fund is constantly revising its predictions, particularly during its yearly gatherings, and mentioned that these predictions could be adjusted by the middle of the upcoming year.
Regarding Eng., on his part Musa Al-Saket, a member of the Board of Directors of the Amman Chamber of Industry, stated that maintaining control over the rise in inflation seen in 2023 and 2024 is essential to achieving certain rates. He pointed out that by keeping inflation in check, there is a good chance of reaching the anticipated growth.
He emphasized that the unstable security situation in the area has had a significant impact on the economies of the region, including the Kingdom, noting that improved stability in the region's countries will lead to higher economic growth rates.
He mentioned that the state's financial burden and public debt are significant factors, and even a small improvement in these areas would enhance potential for economic growth in the future, as it heavily relies on the 2025 budget.
Al-Saqat stated that meeting these expectations involves ongoing economic reforms, advancing the economic modernization vision, enhancing the investment climate, and boosting both local and foreign investments to positively impact the projected economic growth by 2025.
Dr. Maher Al-Mahrouq, the Director General of the Jordanian Banks Association, mentioned that the World Economic Outlook report by the International Monetary Fund indicated that the projected 2.4 percent growth for Jordan in 2024 aligns with the regional average. Additionally, the inflation rates of 2.1 percent in 2024 and 2.4 percent in 2025 for Jordan are notably lower than those of the region, showcasing the effectiveness of the monetary policy and financial steps taken by the Central Bank and Ministry of Finance to keep inflation in check at a local level.
He noted that achieving growth rates amid global and local changes is a crucial aspect of managing government institutions wisely under these conditions, particularly in line with the goal of modernizing the economy and striving to meet economic objectives.
He added that these expectations are based on past economic successes, particularly improving the Kingdom's credit rating by global credit rating agencies like Standard & Poor's and Moody's, the first increase in 21 years. Additionally, efforts are being made to advance the economic reform agenda with international and donor organizations, and strengthen relationships with international markets. Structural issues such as high public debt levels are also being addressed to gradually reduce them.
Al-Mahrouq stated that most economic sectors saw growth in Q2 of 2024 compared to 2023. The agricultural sector had the highest growth, along with transportation, storage, communications, electricity, water, and manufacturing. However, extractive industries and construction sectors saw a decline in the same period.
Al-Mahrouq highlighted that several economic measures have shown improvement recently, particularly with a 2.8 percent rise in total exports in the first eight months of this year compared to last year. Additionally, foreign reserves grew by 11.6 percent to $20.23 billion in September, enough to cover imports for around 8.1 months. He went on to say that by the end of August this year, the banking sector indicators had seen growth, with total assets reaching close to 68.8 billion dinars, a 4 percent increase from the end of 2023. Deposits also grew to 46.3 billion dinars, showing a 5.8 percent increase from the end of 2023, while total credit facilities stood at 34.6 billion dinars, reflecting a growth rate of 3.6 percent.
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