Jordan Economic Monitor, Fall 2016 : Reviving a Slowing Economy
Jordan’s economic growth has been subdued in the last year as spillovers from regional instability take a toll. Jordan has been managing spillovers from the Syrian crisis including closure of trade routes with Iraq and Syria and hosting more than 6...
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2016/11/26948697/reviving-a-slowing-economy http://hdl.handle.net/10986/25463 |
| Summary: | Jordan’s economic growth has been
subdued in the last year as spillovers from regional
instability take a toll. Jordan has been managing spillovers
from the Syrian crisis including closure of trade routes
with Iraq and Syria and hosting more than 656,000 registered
Syrian refugees with UNCHRwith an estimated 1.3 million
Syrians in Jordan as per the census. While the Jordanian
economy hasheld up with growth generated from a number of
sectors, it has been losing momentum. Growth of2.1 percent
in the first half of 2016 slightly declined compared to 2.2
percent in first half of 2015. The outlook is subject to
downside risks. Compared to the region, Jordan’s growth
forecast of 2.3 percent for 2016 is in line with the average
growth rate for the Middle East and North Africa. However,
higher frequency of security incidents are materializing
around Jordan and could further depress consumer and
investor confidence. Containing the fiscal deficit and
implementing the new IMF program will be challenging as some
adjustment measures could be considered socially sensitive.
In parallel, the implementation of planned reforms to
improve the functioning of the labor market, improve the
investment climate and unlock access to finance which are
vital to stimulate economic activity, and improve welfare.
Finally, Jordan’s external position will face further
pressures if expected grants and concessional financing do
not materialize and grants are not sustained and increased. |
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