World Bank expects Jordan’s public debt to rise to 114.2% of GDP in 2024
Ahmad alhyari- The World Bank presented in its economic monitor several forecasts related to public debt in Jordan and its percentage of the Gross domestic product (GDP) for the coming years, especially in 2024, in which it expects, after review, that the percentage of public debt to GDP will reach 114.2%.
The World Bank expected also in the study, which was reviewed by Ammon, that the government’s guaranteed public debt would continue to rise relative to GDP in 2025, reaching 115.2% after review.
The bank also presented its future reading on the government’s public debt, which is guaranteed after excluding the possession of the Social Security Fund, so that its percentage of the expected GDP in 2024 reached 88.5% after review, and in 2025 at 88.2% after review.
The World Bank expects GDP growth in 2024 after revision at 2.5% and in 2025 at 2.6%.
In the report's details, the bank indicated that despite the improvement in the financial performance of the budget sector, which led to a slowdown in debt accumulation, the levels of central government debt remain worrying as pressure from the broader public sector continues.
'The total government and guaranteed debt, which covers the budget sector and other public bodies, including the National Electric Power Company (NEPCO) and the Water Authority, rose to 114.4% of GDP in 2022 compared to 108.8% of GDP in 2021, and 72% of the total increase was driven by the deficit in the budget sector, followed by the NEPCO with 11% and the Water Authority with 9%,' the bank said in its study.
The World Bank considered the Social Security Investment Fund (SSIF) one of the main non-banking entities holding government debt, especially debt in the Jordanian dinar.
In the same context, the bank expected that debt service payments in foreign currency in 2023 would be close to their levels in 2022, but that there would be other large payments between 2025 and 2027.
Finance Minister, Mohammad Issis, said in the 2024 budget speech that the recent review of the International Monetary Fund (IMF) demonstrated the government’s successful completion of the requirements of the 7th review of its national financial and monetary reform program on time without delay.
He explained also that Jordan was able to reach an agreement with the IMF on a new financial and monetary reform program worth $1.2 billion extending to 2028.
The program aims to put public debt on a gradual decline path to reach about 79% of GDP by 2028, he noted.
The program also constitutes a basic guarantee that the government will obtain the necessary financing for the requirements of stimulating growth at lower costs than in the financial markets, he added.
In its latest issue of the International Debt Report the World Bank stated that developing countries spent a record level of $443.5 billion to service their government-guaranteed external public debt in 2022, in the midst of the largest jump in global interest rates in four decades.
Over the past decade, interest payments made by these countries have quadrupled, reaching an all-time high of $23.6 billion in 2022.
The report concluded that the total costs of debt servicing in the 24 poorest countries are expected to swell in 2023 and 2024 – by up to 39%.
Ahmad alhyari- The World Bank presented in its economic monitor several forecasts related to public debt in Jordan and its percentage of the Gross domestic product (GDP) for the coming years, especially in 2024, in which it expects, after review, that the percentage of public debt to GDP will reach 114.2%.
The World Bank expected also in the study, which was reviewed by Ammon, that the government’s guaranteed public debt would continue to rise relative to GDP in 2025, reaching 115.2% after review.
The bank also presented its future reading on the government’s public debt, which is guaranteed after excluding the possession of the Social Security Fund, so that its percentage of the expected GDP in 2024 reached 88.5% after review, and in 2025 at 88.2% after review.
The World Bank expects GDP growth in 2024 after revision at 2.5% and in 2025 at 2.6%.
In the report's details, the bank indicated that despite the improvement in the financial performance of the budget sector, which led to a slowdown in debt accumulation, the levels of central government debt remain worrying as pressure from the broader public sector continues.
'The total government and guaranteed debt, which covers the budget sector and other public bodies, including the National Electric Power Company (NEPCO) and the Water Authority, rose to 114.4% of GDP in 2022 compared to 108.8% of GDP in 2021, and 72% of the total increase was driven by the deficit in the budget sector, followed by the NEPCO with 11% and the Water Authority with 9%,' the bank said in its study.
The World Bank considered the Social Security Investment Fund (SSIF) one of the main non-banking entities holding government debt, especially debt in the Jordanian dinar.
In the same context, the bank expected that debt service payments in foreign currency in 2023 would be close to their levels in 2022, but that there would be other large payments between 2025 and 2027.
Finance Minister, Mohammad Issis, said in the 2024 budget speech that the recent review of the International Monetary Fund (IMF) demonstrated the government’s successful completion of the requirements of the 7th review of its national financial and monetary reform program on time without delay.
He explained also that Jordan was able to reach an agreement with the IMF on a new financial and monetary reform program worth $1.2 billion extending to 2028.
The program aims to put public debt on a gradual decline path to reach about 79% of GDP by 2028, he noted.
The program also constitutes a basic guarantee that the government will obtain the necessary financing for the requirements of stimulating growth at lower costs than in the financial markets, he added.
In its latest issue of the International Debt Report the World Bank stated that developing countries spent a record level of $443.5 billion to service their government-guaranteed external public debt in 2022, in the midst of the largest jump in global interest rates in four decades.
Over the past decade, interest payments made by these countries have quadrupled, reaching an all-time high of $23.6 billion in 2022.
The report concluded that the total costs of debt servicing in the 24 poorest countries are expected to swell in 2023 and 2024 – by up to 39%.
Ahmad alhyari- The World Bank presented in its economic monitor several forecasts related to public debt in Jordan and its percentage of the Gross domestic product (GDP) for the coming years, especially in 2024, in which it expects, after review, that the percentage of public debt to GDP will reach 114.2%.
The World Bank expected also in the study, which was reviewed by Ammon, that the government’s guaranteed public debt would continue to rise relative to GDP in 2025, reaching 115.2% after review.
The bank also presented its future reading on the government’s public debt, which is guaranteed after excluding the possession of the Social Security Fund, so that its percentage of the expected GDP in 2024 reached 88.5% after review, and in 2025 at 88.2% after review.
The World Bank expects GDP growth in 2024 after revision at 2.5% and in 2025 at 2.6%.
In the report's details, the bank indicated that despite the improvement in the financial performance of the budget sector, which led to a slowdown in debt accumulation, the levels of central government debt remain worrying as pressure from the broader public sector continues.
'The total government and guaranteed debt, which covers the budget sector and other public bodies, including the National Electric Power Company (NEPCO) and the Water Authority, rose to 114.4% of GDP in 2022 compared to 108.8% of GDP in 2021, and 72% of the total increase was driven by the deficit in the budget sector, followed by the NEPCO with 11% and the Water Authority with 9%,' the bank said in its study.
The World Bank considered the Social Security Investment Fund (SSIF) one of the main non-banking entities holding government debt, especially debt in the Jordanian dinar.
In the same context, the bank expected that debt service payments in foreign currency in 2023 would be close to their levels in 2022, but that there would be other large payments between 2025 and 2027.
Finance Minister, Mohammad Issis, said in the 2024 budget speech that the recent review of the International Monetary Fund (IMF) demonstrated the government’s successful completion of the requirements of the 7th review of its national financial and monetary reform program on time without delay.
He explained also that Jordan was able to reach an agreement with the IMF on a new financial and monetary reform program worth $1.2 billion extending to 2028.
The program aims to put public debt on a gradual decline path to reach about 79% of GDP by 2028, he noted.
The program also constitutes a basic guarantee that the government will obtain the necessary financing for the requirements of stimulating growth at lower costs than in the financial markets, he added.
In its latest issue of the International Debt Report the World Bank stated that developing countries spent a record level of $443.5 billion to service their government-guaranteed external public debt in 2022, in the midst of the largest jump in global interest rates in four decades.
Over the past decade, interest payments made by these countries have quadrupled, reaching an all-time high of $23.6 billion in 2022.
The report concluded that the total costs of debt servicing in the 24 poorest countries are expected to swell in 2023 and 2024 – by up to 39%.
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World Bank expects Jordan’s public debt to rise to 114.2% of GDP in 2024
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