Jordan Financial Market Update

Jordan growth beats forecasts
Jordan's gross domestic product grew 6% last year, higher than expected by the government. It was driven mainly by the finance, insurance, real estate and business services sectors, particularly during the final quarter of the year. GDP is growth is expected to remain at 6% this year, although a recent International Monetary Fund report suggested growth would be closer to 5.5%.
Jordan: Thursday, March 27 - 2008 at 13:04

Jordan cuts US dollar reserves
The Central Bank of Jordan is trimming the amount of dollars in its foreign reserves because of the falling value of the U.S. currency and the need to service debt, reported Bloomberg citing an interview with Deputy Governor Faris Sharaf. The central bank official would not provide a break down of the bank's reserves, totaling around $7bn. The Jordanian dinar has been pegged to the dollar since October 1995 at an average price of 0.709 fils.
Jordan: Thursday, March 13 - 2008 at 09:30

Jordan's CB tries to cut inflation
Jordan's government needs to rein in spending to crimp inflation and narrow a current account deficit that has reached about 15 per cent of economic output, the Central Bank of Jordan's deputy governor said, reported Bloomberg. Last month Jordan approved a budget that includes a 33 per cent increase in spending to 5.2bn dinars ($7.3bn) for this year. The fiscal deficit will widen to 5.6 percent of gross domestic product, from 5.4 percent of GDP in 2007. Jordan's inflation rate will probably jump to the highest in 18 years in 2008 after the government ended oil subsidies this month, pushing prices up as much as 76 per cent, Finance Minister Hamed al-Kasasbeh said. Inflation will accelerate to between 8 percent and 9 percent from 5.4 per cent last year.
Jordan: Sunday, February 17 - 2008 at 11:43

Jordan and Russia discuss trade ties
Russian President Vladimir Putin and Jordan's King Abdullah II will meet for talks that will focus on trade and economic ties between the two nations, a senior Kremlin official said, reported Xinhua. Abdullah is scheduled to arrive in Moscow later in the day for his eighth visit to Russia. He is also expected to meet with First Deputy Prime Minister and presidential hopeful Dmitry Medvedev during his two-day visit. The Jordanian king urged the two countries to enhance cooperation in such fields as infrastructure projects, the oil and gas industry and the nuclear energy sector. Abdullah also appreciated Russia's involvement in the Middle East peace process, saying it will be vital in the months ahead as Palestinians and Israelis begin to discuss final status issues.
Jordan: Monday, February 11 - 2008 at 11:34 |

Standard of living affected in Jordan
An analysis of the latest household and income survey conducted by the Department of Statistics (DoS) showed standards of living were adversely affected in 2002-2006, reported MENAFN. First Strategieh Consulting indicated in the December issue of The Economic Report that the growth rate in income at current prices was less than the inflation rate. The Economic Report, entitled 'Jordanian Economy: Further Challenges', said that despite an 11.3 per cent growth in average income per household at current prices between 2002 and 2006, this income at constant prices declined by 3.7 per cent. The analysis showed that, at current prices, the annual income per person, on average, grew 20.2 per cent from JD900.5 to JD1,082 in 2006. But at constant prices, this income expanded by 3.6 per cent.
Jordan: Sunday, February 10 - 2008 at 13:04

Jordan's inflation may hit 18-year high
Jordan's Finance Minister Hamed al-Kasasbeh has said the country's inflation rate is likely to climb to its highest level in 18 years in 2008, reported Bloomberg. He said inflation will accelerate to between 8% and 9% from 5.4% last year, while the economy will grow about 6% this year, driven by infrastructure projects and foreign direct investment.
Jordan: Tuesday, January 29 - 2008 at 06:59

US increases aid to Jordan
The US plans to substantially increase its aid to Jordan in 2008 to support the kingdom's economic and political stability, reported Reuters. The grants for fiscal year 2008 will total $663.5m - $363.5m in economic support and $300m in foreign military financing. The total represents a 48% increase over fiscal year 2007.
Jordan: Tuesday, January 15 - 2008 at 13:02

GCC investments in Jordan may hit $4bn
Investment from GCC to Jordan is expected to hit $4bn this year, from $1.5bn registered last year, reported Khaleej Times. To create more awareness about the investment potential in Jordan, 'Gulf in Jordan 2008, an investment forum and exhibition has been planned in the Dead Sea area from April 8-10, in which leading investors from GCC and the UAE are expected to participate.
Jordan: Tuesday, January 08 - 2008 at 10:23

Abraaj sells Maktoob stake
Abraaj Capital has sold its stake in Jordan based web portal Maktoob.com generating an internal rate of return in excess of 75%. The stake, which was acquired in 2005 by the Abraaj Buyout Fund, was sold for an unspecified sum to Tiger Global Management, an existing shareholder in Maktoob. The portal claims to be the most visited Arabic website in the Arab region.
Jordan: Sunday, December 30 - 2007 at 14:39

Jordan's spending hits $7.4bn
Jordan's Finance Minister Hamad Kasasbah revealed last week that the kingdom’s state expenditure would reach almost $7.4bn next year, a rise of 13.4% over this year’s figure, reported Reuters. Kasasbah also stated there would be a budget deficit of more than $1bn, representing 5.6% of GDP, a lift on this year’s $878m, or 5.4% of GDP. Jordan will also scrap fuel and food subsidies to keep the deficit in check.
Jordan: Saturday, December 29 - 2007 at 09:10