Doha: The Jordanian economy is recovering from the crisis in 2012, with support from the IMF and GCC countries. The international reserves of the Central Bank of Jordan have more than doubled in 2013 and economic activity is picking up.
On this basis, real GDP growth to accelerate from an estimated 2.9 percent in 2013 to 3.6 percent in 2014 and to average 4.4 percent during 2015-16, driven by private sector led growth in the construction sector, lower energy costs, a recovery in tourism, a normalisation of mining exports as well as growth in other services, said Qatar National Bank (QNB) Group.
However the long-term outlook is still below the economy’s full potential. This is mainly due to political challenges such as the impact of Syrian refugees displacement to Jordan and the Jordanian government’s budget deficit. The report said the Jordanian government dealt well with the foreign exchange market pressures from the Syrian conflict the CBJ was forced to raise policy rates repeatedly in 2012. This tightening of monetary policy, combined with an improvement in external financial support, has helped to restore the confidence in the Jordanian Dinar. The Peninsula
