Press Release No. 14/445

Press Release: IMF Staff Statement at the End of a Review Mission to Jordan

September 28, 2014

A mission from the International Monetary Fund (IMF), led by Ms. Kristina Kostial, visited Amman during September 9-21 for the fifth and sixth reviews of Jordan’s economic performance under the Stand-By Arrangement (SBA). At the end of the visit, Ms. Kostial issued the following statement:

“Jordan’s economy has proven resilient in an increasingly difficult regional environment—particularly disruptions of gas flow from Egypt, the conflict in Syria and the resulting flow of refugees, and the developments in Iraq and Gaza. Growth is expected to reach 3.3 percent this year, up from 2.8 percent last year, helped by recovery in several sectors, including in agriculture and mining. Inflation is projected to decline to less than 3 percent by the end of 2014 from 3.3 percent in 2013. The current account deficit continues to improve and is expected to narrow to less than 7.5 percent of GDP this year.

“Program performance is broadly on track. Fiscal consolidation is proceeding, with the finances of the central government expected to stay on target through the end of 2014, and international reserves to continue to over-perform. Owing to shortfalls in gas supply from Egypt, the electricity company incurred additional losses, which will be financed mostly from grants.

“The authorities and the mission held constructive discussions about a comprehensive set of policies for 2015. The focus continues to be on reducing public deficits and debt, while boosting growth and creating jobs so as to improve living standards and social conditions for Jordanians in the future. The draft income tax law—an initiative which would help spread the burden of adjustment more equitably in addition to raising revenue—is currently being discussed in Parliament.

“We are continuing our constructive discussions from headquarters. The IMF is looking forward to maintain its dialogue with the authorities and support Jordan’s national program of economic reforms.”

For information about the IMF and Jordan, please see the following link:

http://www.imf.org/external/country/JOR/index.htm

For information on the Stand-By Arrangement, please see the following link:

http://www.imf.org/external/np/sec/pr/2014/pr14183.htm