Jordan: Request for a Stand-By Arrangement—Staff Report; Staff Supplement; Request for Modification of Performance Criteria; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Jordan
IMF Staff Country Reports, December 27, 2012
Source details
- Canonical URL
- Jordan: Request for a Stand-By Arrangement—Staff Report; Staff Supplement; Request for Modification of Performance Criteria; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Jordan
Other formats
Bibliographic details
- Published: December 27, 2012
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475598520.002
Executive summary
- Jordan’s external vulnerabilities, arising mainly from the energy sector, increased during the last decade.
- Aided by exceptionally large grants, fiscal policy accommodated the social impact of these shocks.
- Concerns about social tensions at the beginning of the year put on hold the needed fiscal consolidation.
- Balance of payments pressures intensified.
- The authorities’ program is designed to correct the fiscal and external imbalances and support the exchange rate peg.
- Structural policies will focus on supporting growth and employment.
Main findings and analysis
- External vulnerabilities are concentrated in the energy sector and have increased over the last decade.
- Fiscal policy response relied on exceptionally large grants to accommodate social impacts from shocks.
- Social tensions at the beginning of the year delayed fiscal consolidation efforts.
- Balance of payments pressures intensified concurrently with delayed consolidation.
- Program aims:
- Correct fiscal imbalances.
- Correct external imbalances.
- Support the exchange rate peg.
- Implement structural policies to support growth and employment.
Policy recommendations / Program focus
- Restore fiscal balance through consolidation measures (timing impeded by social tensions).
- Address external imbalances and balance of payments pressures.
- Support the exchange rate peg as part of macroeconomic stabilization.
- Advance structural reforms to foster growth and employment.
Subject classification and keywords
- Subject: External debt, Fuel prices, Oil prices, Prices, Public debt, Tariffs, Taxes
- Keywords: CR, debt service, Fuel prices, Global, ISCR, Jordan, modification of the performance criteria, NIR calculation, NIR of the CBJ, NIR PC, Oil prices, revenue loss, September, Tariffs