Jordan’s economy is expected to expand by 2.9 per cent by the end of 2015 and 3.7 per cent next year, according to a new report.
Consumer price index or inflation is projected to retreat by 0.2 per cent this year from 2.9 per cent in 2014 but will go up again in 2016 to 3.1 per cent, reads the report by the Arab Monetary Fund.
The fund warned that any rise in oil prices will again pose a challenge to Jordan and its economy, which imports about almost all of its oil needs.
The pan-Arab fund highlighted structural reforms carried out by the Jordanian government to spur growth, according to some parts of the report published by Al-Rai daily.
It noted a set of measures aimed at improving the investment climate, cementing partnerships between the private and public sectors and endorsing legislation such as investments and sukuk laws.
The Arab kingdom will, most likely, be affected by developments in regional countries, namely a major influx of Syrian refugees who place additional pressures on an already-strained infrastructure and economy and high unemployment, the fund indicates.
Furthermore, remittances by a large number of Jordanian expatriates who work in Gulf countries are expected to decline as a result of lower oil prices.