Statement at the Conclusion of an IMF Mission to JordanPress Release No. 13/528
December 19, 2013
A mission from the International Monetary Fund (IMF) visited Amman during December 3-18 in the context of the third review of Jordan’s economic performance under the Stand-By Arrangement (SBA). Kristina Kostial, the IMF Mission Chief for Jordan, issued the following statement today:
“Jordan’s economic recovery is gaining traction. Growth is expected to increase to 3 percent in 2013 from 2.7 percent in 2012, the 12-month inflation rate is projected to drop below 3 percent by end-2013 from 6.5 percent at end-2012 (implying a reduction in average inflation in 2013 to 5.5 percent), and the current account deficit is narrowing substantially. Still, the external environment remains difficult, with the conflict in Syria weighing on Jordan’s economy, and gas inflows from Egypt subject to potential disruption.
“Performance under the program remains broadly on track. Fiscal consolidation is proceeding, with the finances of the central government and the electricity company expected to stay as targeted through end-2013. International reserves are now at a comfortable level and are expected to exceed their end-2013 target by a large margin. Moreover, fiscal and external imbalances have been reduced while social protection has been strengthened.
“The authorities and the mission held constructive discussions about a comprehensive set of policies for 2014. The focus continues to be on reducing public debt in an equitable way while maintaining high buffers and boosting growth and jobs so that Jordanians have an opportunity to work and improve their economic and social conditions. The authorities are in the process of discussing their 2014 budget with stakeholders, including the parliament. To provide sufficient time for this consultation, we will resume our discussions in early 2014. The IMF is looking forward to continuing its dialogue with the authorities and supporting Jordan’s national program of economic reforms.”
For information on the Stand-By Arrangement, please see the following link: http://www.imf.org/external/country/JOR/index.htm